* Target shares slump as holiday sales miss
* UnitedHealth rises after backing full-year forecast
* Indexes: Dow +0.54%, S&P 500 +0.33%, Nasdaq +0.32%
(Updates with afternoon trade)
By Noel Randewich
Jan 15 (Reuters) - U.S. stocks climbed but were off earlier
intraday records on Wednesday after the United States and China
signed a Phase 1 trade agreement and pledged to resolve a tariff
dispute that has roiled financial markets for over a year.
The centerpiece of the truce is a pledge by China to
purchase at least an additional $200 billion worth of U.S. farm
products and other goods and services over two years, over a
baseline of $186 billion in purchases in 2017.
The trade agreement clears the way for investors to focus on
upcoming quarterly earnings reports, including the outlooks
companies provide in light of the deal.
“There's no question from a psychological viewpoint it's a
big relief for the market," said Peter Cardillo, chief market
economist at Spartan Capital Securities in New York. "There are
still CEOs that are dubious, but this might help capital
investments, and that was the biggest missing link to the
economy over the last few years.”
Trump said he would remove all U.S. tariffs on Chinese
imports as soon as the two countries complete the Phase 2 trade
agreement, on which negotiations will start soon.
The three main stock indexes gave up early record highs,
with disappointing earnings reports from Bank of America pushing
the S&P financial index .SPSY down 0.6%.
Bank of America Corp BAC.N reported a better-than-expected
quarterly profit, but warned of weak net interest income in the
first half of 2020, knocking its shares down 2.1%.
Goldman Sachs Group Inc GS.N added 0.5% despite reporting
a bigger-than-expected fall in profit as it set aside more money
to cover legal costs. At 2:27 pm ET, the Dow Jones Industrial Average .DJI was
up 0.54% at 29,095.54 points, while the S&P 500 .SPX gained
0.33% to 3,293.84.
The Nasdaq Composite .IXIC added 0.32% to 9,280.96.
UnitedHealth Group Inc UNH.N , the largest U.S. health
insurer, rose 3.5% as it affirmed its full-year outlook for 2020
adjusted earnings. The S&P healthcare index .SPXHC climbed
1.0%.
Retailer Target Corp TGT.N slumped 7.3% after it missed
its own expectations for 2019 holiday season sales after
reporting a drop in online growth and demand for toys and
electronics. Toymakers Mattel Inc MAT.O and Hasbro Inc HAS.O fell
4.8% and 2.6%, respectively, while electronics seller Best Buy
BBY.N dropped 1.4%.
Advancing issues outnumbered declining ones on the NYSE by
a 1.46-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored
advancers.
The S&P 500 posted 72 new 52-week highs and no new lows; the
Nasdaq Composite recorded 143 new highs and 15 new lows.