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US STOCKS-Wall St at record levels after strong U.S., China data

Published 17/01/2020, 18:10
© Reuters.  US STOCKS-Wall St at record levels after strong U.S., China data
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* U.S. housing starts race to 13-year high in December

* Schlumberger rises after Q4 earnings beat

* J B Hunt results drag down Dow Transports index

* Indexes up: Dow 0.12%, S&P 0.18%, Nasdaq 0.02%

(Adds details, updates prices, changes comment)

By Sruthi Shankar

Jan 17 (Reuters) - U.S. stock indexes nudged higher to fresh

record levels on Friday after strong housing data and

indications of resilience in the Chinese economy raised hopes of

a rebound in global growth.

Investor sentiment has brightened this week after the

world's top two economies took the first step in calling a truce

to their 18-month tariff dispute by sealing a Phase 1 trade

deal. Wall Street's three main indexes were on track to end the

week with gains of over 1.5%.

Demand for risky assets improved after data showed China

ended 2019 on a somewhat firmer note, even as economic growth

cooled to its weakest in nearly 30 years in the last year.

Meanwhile, U.S. homebuilding surged to a 13-year high in

December, suggesting the housing market recovery was back on

track amid low mortgage rates. "Housing reports have come out quite positive, the job

growth continues to be healthy and all the worries we had about

a recession seem to have passed," said Brad McMillan, chief

investment officer for Commonwealth Financial Network, an

independent broker-dealer.

"That being the case, the only worry is earnings, but they

seem to be coming out quite well so far."

Analysts expect profits at S&P 500 companies to drop 0.8% in

the fourth quarter, but they call for 5.8% growth in the first

quarter of 2020, according to Refinitiv IBES data.

At 11:37 a.m. ET, the Dow Jones Industrial Average .DJI

rose 0.12% to 29,331.67.

The S&P 500 .SPX gained 0.18% to 3,322.76 and the Nasdaq

Composite .IXIC was up 0.02% at 9,359.01.

After an upbeat showing from banks earlier this week,

oilfield service provider Schlumberger NV SLB.N reported a

slightly better-than-expected quarterly profit, sending its

shares up 1.3%. Google-parent Alphabet Inc GOOGL.O rose 0.8%, extending

gains after it became the fourth U.S. company to top a market

value of $1 trillion on Thursday.

The Dow Jones Transports index .DJT fell 0.3% after

disappointing earnings from J B Hunt Transport Services Inc

JBHT.O and CSX Corp CSX.O .

Advancing issues outnumbered decliners by a 1.11-to-1 ratio

on the NYSE. Declining issues outnumbered advancers for a

1.12-to-1 ratio on the Nasdaq.

The S&P index recorded 118 new 52-week highs and no new

lows, while the Nasdaq recorded 177 new highs and seven new

lows.

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