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US STOCKS-Wall St hits fresh highs on trade deal boost

Published 16/12/2019, 20:56
© Reuters.  US STOCKS-Wall St hits fresh highs on trade deal boost
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* Trade-exposed tech stocks jump

* Boeing slips on 737 MAX production concerns

* Healthcare sector propped up by UnitedHealth, Amgen

* Indexes up: Dow 0.48%, S&P 0.79%, Nasdaq 0.99%

(Updates to late afternoon, changes byline, adds NEW YORK to

dateline)

By April Joyner

NEW YORK, Dec 16 (Reuters) - Wall Street hit record highs

for the third straight session on Monday as cooling trade

tensions between Washington and Beijing and upbeat economic data

from China boosted investor sentiment.

U.S. stocks continued their ascent as Friday's announcement

of an interim trade deal between the world's two biggest

economies lifted prospects for the global economy. Though growth

in China is expected to continue moderating, the trade

developments have brightened the country's economic outlook,

several analysts have said. Adding to such optimism, data released early on Monday

showed that China's industrial output and retail sales growth

accelerated in November.

The U.S.-China trade deal suspended tariffs scheduled to go

into effect on Dec. 15 on a variety of consumer products,

including Apple Inc's AAPL.O iPhone. Apple shares rose 1.8%

and provided the biggest boost to the S&P 500 .SPX and Nasdaq

.IXIC .

Shares of chipmakers, among the most trade-sensitive stocks,

also rose. The Philadelphia SE Semiconductor index .SOX gained

1.4%.

"It validates the best-case scenario people were expecting,"

said Oliver Pursche, chief market strategist at Bruderman Asset

Management in New York, of the removal of tariffs.

Three interest rate cuts by the Federal Reserve this year

and mostly encouraging U.S. economic data have also helped push

Wall Street stocks to record levels. The benchmark S&P 500 index

.SPX is up more than 27% this year and on track for its

highest annual percentage gain in six years.

"We are seeing themes work together to really drive some

confidence in the year end," said Peter Kenny, founder, Kenny's

Commentary LLC and Strategic Board Solutions LLC in New York.

The Dow Jones Industrial Average .DJI rose 135.29 points,

or 0.48%, to 28,270.67, the S&P 500 .SPX gained 25.08 points,

or 0.79%, to 3,193.88 and the Nasdaq Composite .IXIC added

86.86 points, or 0.99%, to 8,821.74.

The S&P 500 healthcare index .SPXHC rose 1.2% as shares of

UnitedHealth Group UNH.N and Amgen Inc AMGN.O jumped after

Goldman Sachs added both companies to its "conviction list."

UnitedHealth shares rose 2.3%, and Amgen shares moved 3.0%

higher.

Boeing Co BA.N shares fell 3.7%, limiting gains on the

Dow, on reports that the planemaker was considering whether to

cut or halt production of its grounded 737 MAX aircraft.

Advancing issues outnumbered declining ones on the NYSE by a

2.52-to-1 ratio; on the Nasdaq, a 1.84-to-1 ratio favored

advancers.

The S&P 500 posted 76 new 52-week highs and no new lows; the

Nasdaq Composite recorded 213 new highs and 47 new lows.

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