US STOCKS-S&P 500, Nasdaq hit fresh record highs on trade deal hopes

Published 26/12/2019, 16:05
© Reuters.  US STOCKS-S&P 500, Nasdaq hit fresh record highs on trade deal hopes
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* China says in close contact with U.S. on trade pact

* Tesla gains as Wedbush hikes price target

* Holiday season online sales hit all-time high - report

* Indexes rise: Dow 0.19%, S&P 0.25%, Nasdaq 0.33%

(Updates price action)

By Manas Mishra

Dec 26 (Reuters) - The S&P 500 and Nasdaq indexes hit fresh

record highs on Thursday on optimism over an imminent U.S.-China

trade deal that has put the benchmark index on track for its

best year since 2013.

Traders returned from the Christmas break to Beijing's

reaffirmation that it was in close contact with Washington about

the initial agreement, which is widely expected to be signed in

early January. President Donald Trump on Tuesday confirmed that the pact

would be formalized at a signing ceremony, but did not disclose

a date or location. "It looks like everybody had a good Christmas, and that is

slopping over into today's stock action," said Kim Forrest,

chief investment officer at Bokeh Capital Partners in

Pittsburgh.

Hopes of a breakthrough in the prolonged trade war, combined

with a loose monetary policy and robust domestic data, have

powered U.S. stocks to record highs in the past few weeks.

The S&P 500 is about 1 percentage point short of its best

year since 1997.

At 9:51 a.m. ET, the Dow Jones Industrial Average .DJI was

up 54.85 points, or 0.19%, at 28,570.30, the S&P 500 .SPX was

up 7.90 points, or 0.25%, at 3,231.28. The Nasdaq Composite

.IXIC was up 29.61 points, or 0.33%, at 8,982.50.

Trading volumes are expected to remain thin this week.

A Labor Department report on Thursday showed that the number

of Americans filing for unemployment benefits fell last week,

indicating resilience in the labor market. Underlining relatively strong consumer confidence, a report

on Wednesday showed U.S. shoppers spent more online during the

holiday shopping season, with e-commerce sales hitting a record

high. Amazon.com Inc AMZN.O rose 1.3%, the biggest boost to S&P

500 index. Its shares also pushed up the consumer discretionary

index .SPLRCD , which rose 0.4%, the most among the 11 S&P 500

sectors.

Tesla Inc TSLA.O shares edged up 0.5% as Wedbush boosted

its price target on the electric-car maker's stock, partly on

expectations of strong U.S. demand for Model 3 sedans.

Advancing issues outnumbered decliners by a 2.43-to-1 ratio

on the NYSE and by a 1.49-to-1 ratio on the Nasdaq.

The S&P index recorded 13 new 52-week highs and no new low,

while the Nasdaq recorded 62 new highs and 10 new lows.

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