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US STOCKS-S&P 500, Dow tick higher on trade optimism; Nasdaq dips on Tesla

Published 22/11/2019, 18:20
© Reuters.  US STOCKS-S&P 500, Dow tick higher on trade optimism; Nasdaq dips on Tesla
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* Trump says trade deal "potentially very close"

* China's Xi says wants to work out an agreement

* Nordstrom jumps on 2019 forecast raise

* Tesla drops after unveiling electric pickup truck

* Indexes: Dow up 0.21%, S&P up 0.05%, Nasdaq off 0.08%

(Updates market action)

By Arjun Panchadar

Nov 22 (Reuters) - The S&P 500 and Dow Jones indexes eked

out gains on Friday following upbeat trade deal comments from

Washington and Beijing, while the Nasdaq was weighed down by a

slump in shares of Tesla after the launch of its electric pickup

truck.

Trump told Fox News that a trade deal was "potentially very

close", adding to optimism following remarks by President Xi

Jinping that Beijing wanted to work out an initial agreement.

Reports earlier in the week had indicated that a truce could be

delayed to 2020. "Deal means actual hard facts and so even if people meet and

get together and talk a little bit more, we don't see anything

substantial happening," said Jeanette Garretty, managing

director & principal at Robertson Stephens Wealth Management in

San Francisco.

A report on Friday said a hedge fund founded by billionaire

Ray Dalio has bet more than $1 billion that stock markets around

the world will fall by March. U.S. stocks have retreated from record highs scaled in

recent weeks on hopes of a resolution to the damaging tariff

war, with the benchmark S&P 500 index on course to snap its

six-week winning streak. The tech-heavy Nasdaq is eyeing its

first weekly drop in eight weeks.

Meanwhile, latest economic data underscored a resilient

domestic economy. U.S. manufacturing output accelerated in

November to its fastest pace in seven months and services

activity picked up more than expected. Six of the 11 major S&P 500 sectors were trading higher, led

by financials .SPSY . Limiting gains on the benchmark index was

the technology sector .SPLRCT , which slipped 0.17%.

Intuit Inc INTU.O dropped 4.60% after the income-tax

filing software maker forecast second-quarter profit below

estimates. At 11:46 a.m. ET, the Dow Jones Industrial Average .DJI

was up 58.37 points, or 0.21%, at 27,824.66, while the S&P 500

.SPX was up 1.49 points, or 0.05%, at 3,105.03.

The Nasdaq Composite .IXIC was down 6.60 points, or 0.08%,

at 8,499.61, dragged down by a 6.3% slump in shares of Tesla Inc

TSLA.O as its electric pickup truck design received an

underwhelming response. Among other stocks, Nordstrom Inc JWN.N jumped 10.4% after

the retailer raised its 2019 forecast and reported third-quarter

profit above expectations. A largely better-than-expected earnings season has also

contributed to the recent market rally.

Advancing issues outnumbered decliners by a 1.39-to-1 ratio

on the NYSE and by a 1.16-to-1 ratio on the Nasdaq.

The S&P index recorded 14 new 52-week highs and two new

lows, while the Nasdaq recorded 38 new highs and 50 new lows.

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