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* Nike shares hit record high on upbeat results
* Philip Morris jumps on calling off Altria merger
* Boeing hits 5-1/2 mth high after board sets up safety
committee
* Aug. new home sales rise more than expected
* Indexes up: Dow 0.56%, S&P 0.31%, Nasdaq 0.44%
(Updates to early afternoon)
By Sruthi Shankar and Ambar Warrick
Sept 25 (Reuters) - U.S. stock indexes were set for their
best day in two weeks on Wednesday after President Donald Trump
said a trade deal with China could happen sooner than expected,
while Nike shares hit a record high on upbeat quarterly results.
Wall Street had a sluggish start after Democratic lawmakers
moved to launch an impeachment inquiry into Trump, adding fresh
uncertainty for markets already roiled by the U.S.-China trade
tussle and worries over slowing global economic growth.
Trump's comments were in contrast to his harsh rhetoric on
Tuesday on the trade dispute, which rattled global stock markets
on Wednesday.
"Its good news that (Trump) thinks the talks are making
progress, but ultimately what investors want to see is a signed
agreement," said Michael Geraghty, equity strategist at
Cornerstone Capital Group.
"The talks with China continue but as we have seen in the
past, apparent progress is later undone because of a hard-line
stance by either both countries or one of the countries."
Nike Inc NKE.N shares jumped 3.7% to a record high and
were among the top boosts to the Dow Jones Industrial Average
.DJI and the S&P 500 .SPX after the company's first-quarter
results beat market expectations.
Footwear retailer Foot Locker Inc FL.N gained 2.3%.
Boeing Co BA.N rose 1.8% after the aircraft maker said it
created a new permanent safety committee in the aftermath of two
fatal 737 MAX crashes. The stock touched a more than 5-1/2 month
high earlier in the session. Shares in Philip Morris PM.N surged 6.1% after the tobacco
company called off merger talks with Altria Group Inc MO.N and
said it would instead focus on the U.S. launch of its
tobacco-heating product, iQOS. The trade-sensitive Philadelphia chip index .SOX gained
0.70%, while the broader technology sector .SPLRCT rose 0.45%.
Eight of the 11 major S&P sectors were in the black, with
the defensive utilities .SPLRCU , real estate .SPLRCR and
healthcare .SPXHC sectors on the back foot.
"I don't think the impeachment issue is weighing on markets,
or will weigh on markets (in the near term) ... However, if it
eventually results in gridlock in Washington, then that
certainly could concern investors and we could see that being
reflected in stock prices," Cornerstone Capital's Geraghty
added.
At 13:09 ET, the Dow Jones Industrial Average .DJI was up
149.81 points, or 0.56%, at 26,957.58 and the S&P 500 .SPX was
up 9.26 points, or 0.31%, at 2,975.86. The Nasdaq Composite
.IXIC was up 34.94 points, or 0.44%, at 8,028.57.
Marathon Petroleum Corp MPC.N rose 7.7% and was among the
top gainers on the S&P 500 after activist investor Elliott
Management renewed its demand for splitting the company into
three.
Chipmaker Broadcom Inc AVGO.O dropped 3.3% and was the
biggest loser on the S&P 500 after it priced an upsized offering
of convertible preferred stock. Data showed that sales of new U.S. single-family homes
rebounded more than expected in August, a sign that the
struggling housing market was starting to get a lift from lower
borrowing rates. Advancing issues outnumbered decliners by a 1.17-to-1 ratio
on the NYSE and by a 1.35-to-1 ratio on the Nasdaq.
The S&P index recorded 5 new 52-week highs and no new lows,
while the Nasdaq recorded 17 new highs and 90 new lows.