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US STOCKS-Trade optimism, Disney push Wall Street to new high

Published 26/11/2019, 19:38
© Reuters.  US STOCKS-Trade optimism, Disney push Wall Street to new high
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* Best Buy jumps on solid holiday-quarter profit forecast

* Disney gains on bullish streaming service signups report

* Dollar Tree slumps on dour forecast as tariffs weigh

* Consumer confidence in November weaker than expected

* Indexes up: Dow 0.10%, S&P 0.16%, Nasdaq 0.26%

(Updates to early afternoon)

By Arjun Panchadar

Nov 26 (Reuters) - Wall Street's three main indexes held

steady near all-time highs on Tuesday, as positive comments on

trade by President Donald Trump, along with gains for Disney and

Best Buy, encouraged investors to shrug off weak economic data.

The United States was in the "final throes" in its attempt

to reach a deal with China, Trump said, although he added

Washington stood with protesters in Hong Kong, a sore point with

Beijing. Walt Disney Co DIS.N gained 2.2% after a report that its

streaming service was averaging nearly a million new subscribers

a day. The stock propped up the Dow Jones Industrial Average and

the benchmark S&P 500. Rising trade truce hopes, upbeat domestic economic

indicators and a third-quarter corporate earnings season that

has largely topped lowered expectations have put the market back

on an upward track after a torrid summer.

"When you take a look at all the (trade) comments that have

come out, the markets have reacted a little bit to it, but it

certainly creates a positive bias," said Paul Nolte, portfolio

manager at Kingsview Asset Management in Chicago.

"The second part is that Thanksgiving week tends to be

positive for stocks as well."

The three interest rate cuts by the Federal Reserve this

year have also boosted risk appetite, and Fed Chair Jerome

Powell said on Monday monetary policy was "well positioned" to

support the strong labor market. However, concerns over the strength of the U.S. consumer

returned after data on Tuesday showed the Conference Board's

U.S. consumer confidence index missed analysts' projections.

Commerce Department data showed an unexpected drop in new home

sales last month.

Eight of the 11 major S&P 500 sectors were higher. The

consumer discretionary sector .SPLRCD , rose 0.69%, and

provided the biggest boost, powered by a 12.1% jump in shares of

Best Buy Co Inc BBY.N following a strong holiday-quarter

profit forecast. But Dollar Tree Inc DLTR.O tumbled 16.7% after it

projected holiday-quarter profit below estimates, signaling the

fallout from the trade dispute. Best Buy was the top gainer on the S&P 500, while Dollar

Tree was among the biggest drags on the S&P and the Nasdaq.

At 1:13 p.m. ET, the Dow Jones Industrial Average .DJI was

up 29.36 points, or 0.10%, at 28,095.83, whil the S&P 500 .SPX

was up 4.99 points, or 0.16%, at 3,138.63. The Nasdaq Composite

.IXIC was up 22.09 points, or 0.26%, at 8,654.57.

Among other stocks, Hewlett Packard Enterprise Co HPE.N

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