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US STOCKS-Wall St rises with trade optimism, upbeat economic data

Published 22/11/2019, 20:58
© Reuters.  US STOCKS-Wall St rises with trade optimism, upbeat economic data
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* Trump says deal "potentially very close", Xi comments

positive

* Nordstrom jumps on 2019 forecast raise, Gap rises after

report

* Tesla drops after unveiling electric pickup truck

* Indexes up: Dow 0.43%, S&P 0.19%, Nasdaq 0.05%

(Updates to late afternoon, adds commentary, NEW YORK dateline,

changes byline)

By Sinéad Carew

Nov 22 (Reuters) - Wall Street rose on Friday with help from

positive comments from Washington and Beijing about progress on

efforts to reach a U.S.-China trade deal ,and from upbeat

domestic economic data.

U.S. President Donald Trump told Fox News a trade deal was

"potentially very close" following remarks by President Xi

Jinping that Beijing wanted to work out an initial agreement.

The S&P 500 and the Dow were on track for their biggest

daily gains in a lackluster week marked by uncertainty about

trade. In previous days, one report suggested the delay of a

trade truce to 2020, while U.S. lawmakers backed two bills

backing protesters in Hong Kong.

"It's tied back to the on-again, off-again narrative that's

been the consistent theme regarding a potential trade deal with

China. Our President says we're on today so the market's

responding accordingly," said Mike Loewengart, vice president

for investment strategy at E*Trade Financial Corp in New York.

But investors were also showing skepticism as the Hong Kong

situation added complexity, he said.

Meanwhile, the latest economic data underscored a resilient

domestic economy as U.S. manufacturing output accelerated in

November to its fastest pace in seven months and services

activity picked up more than expected. But the benchmark S&P 500 index was on course to snap its

six-week winning streak, while the tech-heavy Nasdaq is set for

its first weekly drop in eight weeks. A largely

better-than-expected third-quarter corporate earnings season has

also contributed to the recent rally.

The Dow Jones Industrial Average .DJI rose 119.98 points,

or 0.43%, to 27,886.27, the S&P 500 .SPX gained 6.03 points,

or 0.19%, to 3,109.57 and the Nasdaq Composite .IXIC added

4.11 points, or 0.05%, to 8,510.32.

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

led by a 0.68% gain in financials .SPSY .

Nordstrom Inc JWN.N jumped 10.2% after the retailer raised

its 2019 forecast and reported third-quarter profit above

expectations. Gap Inc GPS.N shares were up 4.5%

after it beat lowered quarterly profit estimates days after the

retailer cut its annual forecast and replaced its longtime chief

executive officer. Shares of Tesla Inc TSLA.O fell 6.3% as Wall Street

questioned the look of its newly unveiled electric pickup truck,

whose "armored glass" windows shattered in a demonstration.

Intuit Inc INTU.O dropped 5.7% after the income-tax filing

software maker forecast second-quarter profit below estimates.

Advancing issues outnumbered declining ones on the NYSE by a

1.69-to-1 ratio; on Nasdaq, a 1.47-to-1 ratio favored advancers.

The S&P 500 posted 17 new 52-week highs and 2 new lows; the

Nasdaq Composite recorded 49 new highs and 73 new lows.

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