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US STOCKS-Wall St ekes out gains as investors await U.S.-China trade clarity

Published 18/11/2019, 22:31
© Reuters.  US STOCKS-Wall St ekes out gains as investors await U.S.-China trade clarity
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(For a live blog on the U.S. stock market, click LIVE/ or

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* U.S. grants 90-day extension to Huawei

* Trade in focus after Huawei extension

* Coty gains on stake in Kylie Jenner's businesses

* Indexes up: Dow 0.11%, S&P 0.05%, Nasdaq 0.11%

(Updates to close, adds commentary)

By Sinéad Carew

NEW YORK, Nov 18 (Reuters) - Wall Street's three main

indexes on Monday barely extended the previous session's closing

records as investors waited for concrete progress on U.S.-China

trade relations after mixed headlines.

The market appeared to welcome Washington's extension for

U.S. companies to do business with Huawei after the Chinese

telecommunications equipment maker was put on a U.S. blacklist

in May. But investors were concerned about a CNBC report that the

mood in Beijing over the potential for a trade deal was

pessimistic due to President Donald Trump's reluctance to roll

back tariffs. This was after Chinese state media said on Saturday that the

two sides had "constructive" trade talks, after White House

economic adviser Larry Kudlow said they were close to a deal.

"Markets are very focused on trade because it's still not

clear whether or not the U.S. and China can reach an agreement.

If it was easy to reach an agreement they would've done so many

months ago," said David Lefkowitz, senior equity strategist at

UBS Global Wealth Management.

"At least for today there's not a lot in terms of market

moving data or information ... There's no reason to buy or sell

aggressively."

The Dow Jones Industrial Average .DJI rose 31.33 points,

or 0.11%, to 28,036.22, the S&P 500 .SPX gained 1.57 points,

or 0.05%, to 3,122.03 and the Nasdaq Composite .IXIC added

9.11 points, or 0.11%, to 8,549.94.

"Investors are being patient because they don't want to

chase new all-time highs too far until they have clarity on

trade," said Michael O'Rourke, chief market strategist at

JonesTrading in Stamford, Connecticut.

Seven of the 11 major S&P 500 sectors were trading higher,

with defensives such as consumer staples .SPLRCS and real

estate .SPLRCR leading the percentage gains.

The energy sector .SPNY was the biggest percentage loser

dropping 1.33% as oil prices fell. O/R

Trading was relatively slow with 6.55 billion shares

changing hands on U.S. exchanges compared with the 6.93 billion

average in the last 20 sessions.

"We're sort of in a vacuum of information and news. That's

why the market is very sensitive to what's happening on the

trade front," said Lefkowitz of UBS, noting that the earnings

season was mostly done.

Later this week, the Federal Reserve will release minutes

from its latest policy meeting, where the central bank cut

interest rates for the third time this year. Also ahead are

results from U.S. retailers, including Home Depot Inc HD.N ,

Kohl's Corp KSS.N and Target Corp TGT.N .

Coty Inc COTY.N gained 2.60% after the cosmetics maker

said it would pay $600 million for a majority stake in Kylie

Jenner's make-up and skincare businesses. The S&P 500 posted 42 new 52-week highs and no new lows; the

Nasdaq Composite recorded 103 new highs and 126 new lows.

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