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US STOCKS-Wall St crawls to record levels on trade hopes

Published 26/11/2019, 22:16
© Reuters.  US STOCKS-Wall St crawls to record levels on trade hopes
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* Best Buy jumps on solid holiday-quarter profit forecast

* Consumer confidence in November weaker than expected

* Dow up 0.2%, S&P 500 up 0.22%, Nasdaq up 0.18%

(Updates to market close)

By Chuck Mikolajczak

NEW YORK, Nov 26 (Reuters) - U.S. stocks crawled higher on

Tuesday, and all three major Wall Street indexes notched record

levels, as upbeat comments by President Donald Trump on trade

talks eclipsed some softer-than-anticipated economic data.

Trump said the United States and China were close to an

agreement on the first phase of a deal, while stressing

Washington's support for protesters in Hong Kong, a point of

contention between the world's two largest economies.

"Right now the characterization is things are pretty good so

we are kind of gaining on it, but until it is done, it is not

done," said Scott Ladner, chief investment officer at Horizon

Investments in Charlotte, North Carolina. "So a holding pattern

is probably, unfortunately, a very appropriate place for the

market to be right about now."

The Dow Jones Industrial Average .DJI rose 55.21 points,

or 0.2%, to 28,121.68, the S&P 500 .SPX gained 6.88 points, or

0.22%, to 3,140.52 and the Nasdaq Composite .IXIC added 15.45

points, or 0.18%, to 8,647.93.

Walt Disney Co DIS.N gained 1.30% after a report that its

streaming service was averaging nearly 1 million new subscribers

a day. The stock helped keep the Dow Jones Industrial Average on

the plus side, providing about 20 points to the upside.

Rising hopes for a trade deal between the world's two

largest economies, solid U.S. economic indicators and a

third-quarter corporate earnings season that has largely topped

lowered expectations have pushed stocks higher. The three major

indexes have now notched a record close in five of the past

eight sessions.

Also supporting stocks has been the dovish turn by the

Federal Reserve, which has cut interest rates three times this

year. Fed Chair Jerome Powell said on Monday that monetary

policy was "well positioned" to support the strong labor market.

Investors are watching for signs on the health of the

consumer for the holiday shopping season. Consumer confidence

fell for a fourth straight month in November but remained at

levels sufficient to support a steady pace of consumer spending,

according to data on Tuesday. A separate report showed that new

home sales unexpectedly dropped in October, although data for

the prior month was revised up, with purchases hitting their

highest level in over 12 years. Eight of the 11 major S&P 500 sectors were higher. The

consumer discretionary sector .SPLRCD rose 0.81% and provided

the biggest boost, led by a 9.86% jump in shares of Best Buy Co

Inc BBY.N following a strong holiday-quarter profit forecast.

In contrast, Dollar Tree Inc DLTR.O tumbled 15.24% after

it projected holiday-quarter profit below estimates, signaling

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

Tree was the biggest drag on both the S&P and the Nasdaq.

Among other stocks, Hewlett Packard Enterprise Co HPE.N

fell 8.48% as the enterprise software maker missed

fourth-quarter revenue estimates. Volume on U.S. exchanges was 7.96 billion shares, compared

to the 7.12 billion average for the full session over the last

20 trading days. Trading volume is expected to lighten

considerably in the sessions surrounding the Thanksgiving

holiday on Thursday.

Advancing issues outnumbered declining ones on the NYSE by a

1.34-to-1 ratio; on Nasdaq, a 1.01-to-1 ratio favored advancers.

The S&P 500 posted 36 new 52-week highs and one new low; the

Nasdaq Composite recorded 120 new highs and 66 new lows.

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