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US STOCKS-Wall St notches records on trade optimism, Apple gains

Published 09/01/2020, 22:58
Updated 09/01/2020, 23:00
© Reuters.  US STOCKS-Wall St notches records on trade optimism, Apple gains
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Easing geopolitical tensions spur risk-on mood

* Apple, banks rally on positive brokerage comments

* Kohl's slides on lower holiday season sales

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

(Updates to close)

By Caroline Valetkevitch

NEW YORK, Jan 9 (Reuters) - Major U.S. stock indexes

registered record closing highs on Thursday as optimism about a

U.S.-China trade deal firmed and as Apple and other market

heavyweights posted strong gains.

Also helping the market were easing concerns over tensions

between the United States and Iran. U.S. President Donald Trump

refrained from ordering more military action, and Iran's foreign

minister said the missile strikes on Iraqi bases that house U.S.

forces had "concluded" Tehran's response. Apple Inc AAPL.O gained 2.1% on twin support from data

showing iPhone sales jumped more than 18% in China in December,

as well as a price target hike by Jefferies on expectations of a

strong finish to 2019. The S&P 500 technology

sector .SPLRCT rose 1.1%, the top gainer among sectors.

The financial index .SPSY ended up 0.77% after bullish

brokerage comments on Citigroup Inc C.N and Goldman Sachs

Group Inc GS.N ahead of their earnings next week.

On trade, China's commerce ministry said Vice Premier Liu He

will sign a Phase 1 deal in Washington next week. Trump said his administration will start negotiating the

Phase 2 trade agreement soon but that he might wait to complete

any agreement until after November's presidential election.

"Some of the things that have been worrying the market have

gotten pushed to the side of the table," said Peter Tuz,

president of Chase Investment Counsel in Charlottesville,

Virginia.

But also, he said, "in the first part of the year, there's

always a lot of money that finds its way into the market."

The Dow Jones Industrial Average .DJI rose 211.81 points,

or 0.74%, to 28,956.9, the S&P 500 .SPX gained 21.65 points,

or 0.67%, to 3,274.7 and the Nasdaq Composite .IXIC added

74.18 points, or 0.81%, to 9,203.43.

Investors have been closely monitoring tensions between the

United States and Iran after the U.S. killing of a top Iranian

general last week and Iran's retaliatory measures this

week. Among the day's decliners was the department store operator

Kohl's Corp KSS.N , which slid 6.5% after reporting lower

holiday season sales and warning of full-year earnings coming in

at the bottom end of an already lowered forecast. Smaller rival J.C. Penney Co Inc JCP.N tumbled 10.8% after

disappointing same-store sales numbers.

With the fourth-quarter earnings season kicking off next

week, analysts expect profits for S&P 500 companies to drop 0.6%

in their second consecutive quarterly decline, according to IBES

data from Refinitiv.

Advancing issues outnumbered declining ones on the NYSE by a

1.35-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favored advancers.

The S&P 500 posted 78 new 52-week highs and no new lows; the

Nasdaq Composite recorded 152 new highs and 14 new lows.

Volume on U.S. exchanges was 7.30 billion shares, compared

with the 7.06 billion-share average for the full session over

the last 20 trading days.

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