US STOCKS-S&P 500 posts biggest weekly pct gain since Sept amid data, trade optimism

Published 20/12/2019, 22:47
Updated 20/12/2019, 22:54
© Reuters.  US STOCKS-S&P 500 posts biggest weekly pct gain since Sept amid data, trade optimism

* Nike falls as North America revenue disappoints

* Carnival Corp gains

* Consumer spending rose last month

* Indexes up: Dow 0.3%, S&P 0.5%, Nasdaq 0.4%

By Caroline Valetkevitch

NEW YORK, Dec 20 (Reuters) - U.S. stocks hit record closing

highs again on Friday and the S&P 500 registered its biggest

weekly percentage gain since early September after data showed a

rise in consumer spending and investors continued to be

optimistic about developments in the U.S.-China trade dispute.

President Donald Trump claimed progress on issues from trade

to North Korea and Hong Kong after speaking with Chinese

President Xi Jinping, dispelling fears of another escalation in

the two countries' trade war. The S&P 500 also hit a seventh straight intraday all-time

high in its longest streak of record intraday highs since

October 2017, and the Nasdaq ended with gains for an eighth

session in a row.

"This time of year tends to be a tailwind for the market,"

said Walter Todd, chief investment officer at Greenwood Capital

Associates in Greenwood, South Carolina, who helps manage about

$950 million.

"There's nothing obvious between now and the end of the year

that would change the direction we're headed. So it's kind of a

melt-up."

The Dow Jones Industrial Average .DJI rose 78.13 points,

or 0.28%, to 28,455.09, the S&P 500 .SPX gained 15.85 points,

or 0.49%, to 3,221.22 and the Nasdaq Composite .IXIC added

37.74 points, or 0.42%, to 8,924.96.

The S&P 500 rose for a fourth straight week, gaining 1.7%

for the week, its biggest weekly gain since early September.

Consumer spending, a key to U.S. economic growth and a major

focus for investors, rose 0.4% in November, adding to a string

of upbeat data that have helped put a damper on recession fears,

which dogged markets earlier this year.

Volume on U.S. exchanges hit the highest in a year, boosted

by "quadruple witching," in which investors unwind positions in

futures and options contracts before their expiration. About

11.53 billion shares changed hands on Friday.

Nike Inc NKE.N was down 1.2% after the world's largest

sportswear maker reported lower-than-expected growth in revenue

from North America. Cruise operators were among top percentage gainers in the

S&P 500, led by Carnival Corp CCL.N , which jumped 7.6% after

forecasting a 2020 profit largely above estimates. On the flip side, shares of U.S. Steel Corp X.N tumbled

10.8% after the company said it expects a bigger-than-expected

fourth-quarter loss. The recent record run could make it harder for stocks to

rally once the next earnings season begins, Todd said, noting

that "there could be increased volatility."

Advancing issues outnumbered declining ones on the NYSE by a

1.60-to-1 ratio; on Nasdaq, a 1.39-to-1 ratio favored advancers.

The S&P 500 posted 77 new 52-week highs and no new lows; the

Nasdaq Composite recorded 199 new highs and 38 new lows.

S&P 500 Records https://tmsnrt.rs/2Mf6LNo

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