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US STOCKS-Trade-fueled rally pushes Wall Street to fresh record high

Published 07/11/2019, 17:50
Updated 07/11/2019, 17:54
© Reuters.  US STOCKS-Trade-fueled rally pushes Wall Street to fresh record high
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Qualcomm among top boosts to S&P 500, Nasdaq on upbeat

forecast

* Trade-sensitive chipmakers, industrials rise

* Ralph Lauren jumps on profit beat

* Roku plunges after bigger loss

* Indexes up: Dow 0.84%, S&P 0.53%, Nasdaq 0.74%

(Changes comment, updates market action)

By Arjun Panchadar

Nov 7 (Reuters) - Wall Street's main indexes hit fresh

record highs on Thursday, as signs of progress in U.S.-China

trade relations and a batch of largely upbeat earnings boosted

risk appetite.

The benchmark S&P 500 index .SPX is eyeing its fifth

straight week of gains, while the tech-heavy Nasdaq .IXIC is

on track to rise for a sixth week in a row.

China said on Thursday it had agreed with the United States

to remove tariffs in phases, while state-owned Xinhua News

Agency said Beijing was also considering removing restrictions

on poultry imports. "A reduction in tariffs is a positive for the overall

market," said Robert Pavlik, chief investment strategist and

senior portfolio manager at SlateStone Wealth LLC in New York.

"Trade right now looks like the one thing that can push the

markets higher at this point, because we have got through

earnings and most of the heavy hitting economic data points for

the month."

Seven of the 11 major S&P sectors were higher, with the

communication services sector .SPLRCL gaining 1.23%, the most

among all, while financials rose 1.19% as the benchmark 10 year

U.S. Treasury yield hit a three-month high. US/

The technology sector .SPLRCT provided the biggest boost

to the S&P 500, riding on a 8.3% jump in Qualcomm Inc QCOM.O

shares after the chipmaker forecast current-quarter profit above

analysts' estimates. Chipmakers, which have a sizeable exposure to China, rose

propping the Philadelphia Semiconductor index .SOX 1.42%

higher and trade-sensitive industrials SPLRCI were also up

0.55%.

"People are moving back to the value camp. Technology stocks

and companies like 3M, which have a lot of international

exposure and are cyclically dependent are going to be getting

the most attention today," Pavlik said.

Of the 430 S&P 500 companies that have reported results so

far, 74% have beaten profit expectations, according to IBES data

from Refinitiv.

At 11:31 a.m. ET the Dow Jones Industrial Average .DJI was

up 229.76 points, or 0.84%, at 27,722.32, the S&P 500 .SPX was

up 16.17 points, or 0.53%, at 3,092.95 and the Nasdaq Composite

.IXIC was up 61.96 points, or 0.74%, at 8,472.59.

Ralph Lauren Corp RL.N jumped about 12% after it topped

second-quarter profit expectations, helped by a tighter control

on expenses and strong demand for its Polo shirts and tweed

jackets in China and Europe. Expedia Group Inc EXPE.O tumbled 24.8% as the online

travel booking company missed quarterly profit estimates.

Roku Inc ROKU.O plunged 10.6% after posting a bigger net

loss in the third quarter, as it spent more to attract

subscribers to its video streaming platform. Twitter Inc TWTR.N fell 1% after Evercore ISI downgraded

the stock to "underperform" from "in-line". Advancing issues outnumbered decliners for a 1.23-to-1 ratio

on the NYSE and a 1.73-to-1 ratio on the Nasdaq.

The S&P index recorded 51 new 52-week highs and five new

lows, while the Nasdaq recorded 99 new highs and 60 new lows.

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