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US STOCKS-Wall St hits record high on China data, trade deal; Apple shines

Published 16/12/2019, 16:47
© Reuters.  US STOCKS-Wall St hits record high on China data, trade deal; Apple shines
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(For a live blog on the U.S. stock market, click LIVE/ or

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* All 11 major S&P 500 sectors in the black

* Trade-exposed Apple, tech stocks gain

* Boeing slips on 737 MAX production concerns

* IFF slips on merger with DuPont unit

* Indexes up: Dow 0.7%, S&P 0.8%, Nasdaq 1%

(Updates to open)

By Uday Sampath Kumar

Dec 16 (Reuters) - Wall Street notched a fresh record high

on Monday as investor confidence was boosted by upbeat data from

China, while cooling trade tensions between the world's two

biggest economies removed one of the hurdles for global economic

growth.

Data showed China's industrial output and retail sales

growth accelerated in November, adding to optimism from the

announcement of a trade deal by the two sides on Friday.

Apple Inc AAPL.O , among the biggest companies to benefit

from the deal, rose 1.7%. Chipmakers that make the components

for its iPhones also gained.

"This deal could be the start of a series of phased

rollbacks (in tariffs), which could unlock further upside for

equity markets, driven by an improvement in business confidence

and a recovery in investment," said Mark Haefele, chief

investment officer at UBS Global Wealth Management.

On Sunday, U.S. Trade Representative Robert Lighthizer said

the trade deal was "totally done" and expected it to nearly

double U.S. exports to China over the next two years.

The benchmark S&P 500 has risen in nine of the past ten

weeks on the back of improving trade sentiment, a solid

third-quarter earnings season, a dovish Federal Reserve and

upbeat economic indicators.

In its policy meeting last week, the Fed stood pat on

interest rates, as expected, and kept the bar high for future

reductions.

Technology stocks .SPLRCT rose 1.2% and led gains among

the 11 major S&P 500 sectors. Financials .SPSY rose 1% after

brokerage Citigroup bumped up its price targets on the big

banks.

At 10:22 a.m. ET the Dow Jones Industrial Average .DJI

was up 197.85 points, or 0.70%, at 28,333.23, the S&P 500 .SPX

was up 26.19 points, or 0.83%, at 3,194.99 and the Nasdaq

Composite .IXIC was up 86.77 points, or 0.99%, at 8,821.65.

Boeing Co BA.N fell 2.3% on reports the planemaker was

considering whether to cut or halt production of its grounded

737 MAX aircraft. Boeing's suppliers also felt the heat, with General Electric

Co GE.N down 0.8% and Spirit AeroSystems Inc SPR.N tumbling

nearly 4%.

Shares of International Flavors & Fragrances Inc IFF.N

fell 7.1% after it said it would merge with DuPont Inc's DD.N

nutrition & biosciences unit. Advancing issues outnumbered decliners for a 3.43-to-1 ratio

on the NYSE and a 2.42-to-1 ratio on the Nasdaq.

The S&P index recorded 62 new 52-week highs and no new low,

while the Nasdaq recorded 147 new highs and 29 new lows.

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