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US STOCKS-Strong data, trade optimism propel Wall St to record levels

Published 27/11/2019, 19:12
© Reuters.  US STOCKS-Strong data, trade optimism propel Wall St to record levels
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Data shows U.S. economic growth picked up slightly in Q3

* Under Armour jumps on Raymond James upgrade

* Deere falls after warning of lower earnings

* Indexes up: Dow 0.02%, S&P 0.26%, Nasdaq 0.52%

(Updates to early afternoon)

By Arjun Panchadar

Nov 27 (Reuters) - Wall Street's main indexes hit record

highs on Wednesday ahead of the Thanksgiving holiday, as fresh

data pointed to a resilient domestic economy, while investors

remained optimistic about a resolution to U.S.-China trade

tensions.

U.S. economic growth picked up slightly in the third

quarter, rather than slowing as initially reported, and a steady

increase in consumer spending in October suggested that the

economy will probably maintain its moderate pace of growth in

the fourth quarter. "So long as the consumer stays somewhat strong, the markets

are in decent shape," said Sahak Manuelian, managing director,

equity trading at Wedbush Securities in Los Angeles.

Consumer discretionary stocks .SPLRCD rose 0.77%.

Data also showed new orders for key U.S.-made capital goods

increased by the most in nine months in October. President Donald Trump's comments on Tuesday that the United

States was in the "final throes" of work on an agreement added

to optimism. "There are not a lot of details (on the trade deal), but it

has certainly fueled this 'hope trade' and so long as nothing

gets signed, the market will grind its way higher," Manuelian

said.

The main indexes have scaled record levels this month on

trade truce hopes, upbeat third-quarter earnings and a dovish

Federal Reserve.

Trading volumes are expected to be light ahead of the

Thanksgiving Day holiday on Thursday and an early-market close

on Friday.

At 12:46 p.m. ET, the Dow Jones Industrial Average .DJI

was up 5.63 points, or 0.02%, at 28,127.31, the S&P 500 .SPX

was up 8.18 points, or 0.26%, at 3,148.70 and the Nasdaq

Composite .IXIC was up 44.79 points, or 0.52%, at 8,692.72.

Capping gains on the Dow was a 0.6% drop in shares of Boeing

Co BA.N after the Federal Aviation Administration said it

would be the only issuer of airworthiness certificates for new

737 MAX jets, the latest hurdle in the planemaker's bid to get

the plane back in the air. Deere & Co DE.N dropped 5% as the farm equipment maker

warned of lower earnings in 2020. Under Armour Inc UAA.N jumped 5.4% as Raymond James

upgraded the sportswear maker to "strong buy".

Advancing issues outnumbered decliners by a 1.52-to-1 ratio

on the NYSE and by a 1.83-to-1 ratio on the Nasdaq.

The S&P index recorded 39 new 52-week highs and no new low,

while the Nasdaq recorded 97 new highs and 29 new lows.

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