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US STOCKS-S&P 500 index holds steady after run to record

Published 05/11/2019, 20:53
Updated 05/11/2019, 20:55
US STOCKS-S&P 500 index holds steady after run to record

US STOCKS-S&P 500 index holds steady after run to record

US500
1.10%
DJI
0.91%
ADBE
0.27%
IXIC
1.35%
SPSY
1.20%
RLVh
0.00%
WRLG
3.51%

(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window)

* ISM data shows upbeat business activity in October

* Dow up 0.28%, S&P 500 down 0.01%, Nasdaq up 0.14%

(Updates to mid-afternoon, changes byline)

By Chuck Mikolajczak

NEW YORK, Nov 5 (Reuters) - The benchmark S&P 500 was little

changed on Tuesday, pausing after growing expectations of a

trade deal between the United States and China helped boost the

three main U.S. stock indexes to record highs in the previous

session.

While there was growing optimism over a deal, investors have

also shown caution, pushing up value stocks over growth names

over the past few sessions. The Russell 1000 value .RLV index

has climbed nearly 2% over the past three sessions compared to a

gain of 0.8% for the Russell 1000 growth .RLG index.

Keeping some tentativeness intact, China is pushing

President Donald Trump to remove more tariffs as part of the

"phase one" deal, which may be signed this month, according to

latest reports. "It's a classic fear of either missing out but you maybe

want to take some profits," said Thomas Martin, senior portfolio

manager at Globalt Investments in Atlanta, Georgia.

"You made some money and you have to be careful here, but

you have to be careful both ways, because there really has been

a shift in the growth and value thing just this month, in favor

of large cap value."

Financials .SPSY , a big weight for value stocks, were the

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best performing S&P sector, up 0.71% as benchmark U.S. Treasury

yields hit a six-week high. In contrast, the rate-sensitive real

estate sector .SPLRCR dropped 1.72%. The Dow Jones Industrial Average .DJI rose 76.89 points,

or 0.28%, to 27,539, the S&P 500 .SPX lost 0.29 points, or

0.01%, to 3,077.98 and the Nasdaq Composite .IXIC added 11.89

points, or 0.14%, to 8,445.09.

The S&P 500 and the Nasdaq closed at record highs for a

second session on Monday, while the Dow hit a record high for

the first time since July.

Apart from hopes of a resolution to the trade war, stocks

have received a boost from a largely better-than-expected

third-quarter earnings season, the Federal Reserve's interest

rate cut and upbeat economic data.

Data on Tuesday showed the reading on the ISM services index

improved to 54.7 in October from 52.6 in September, above

expectations of 53.4, according to economists polled by Reuters,

easing concerns that a slowdown in the manufacturing sector was

spreading to other parts of the economy.

Over three quarters of S&P 500 companies that have reported

results so far have beaten profit expectations, Refinitiv data

showed. Earnings for the quarter are now expected to dip 0.8%,

an improvement from the 2.2% decline expected on Oct. 1.

A 2.53% rise in Boeing Co's BA.N shares provided the

biggest boost to the blue-chip Dow Jones index after Chairman

Dave Calhoun said the company's board believed CEO Dennis

Muilenburg "has done everything right" following two fatal

crashes involving its 737 MAX jet. Helping the Nasdaq advance was Adobe Inc ADBE.O , which

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gained 3.84% as the Photoshop software maker raised its

fourth-quarter digital media annualized recurring revenue target

and gave a strong forecast for fiscal 2020.

Kroger Co KR.N surged about 11.44% after the supermarket

chain forecast 2020 profit and comparable sales ahead of Wall

Street estimates. Uber Technologies Inc UBER.N fell 9.01% as the

ride-hailing service posted a bigger third-quarter loss from a

year earlier. Declining issues outnumbered advancing ones on the NYSE by a

1.12-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored advancers.

The S&P 500 posted 58 new 52-week highs and no new lows; the

Nasdaq Composite recorded 144 new highs and 33 new lows.

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