US STOCKS-Wall Street extends record-setting rally; FedEx drops

Published 18/12/2019, 18:28
© Reuters.
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* S&P 500, Nasdaq hit new record highs

* FedEx tumbles 9% after cutting profit forecast

* Trump impeachment vote in focus

* Indexes: Dow flat, S&P up 0.1%, Nasdaq up 0.2%

(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window.)

By Uday Sampath Kumar and C Nivedita

Dec 18 (Reuters) - The S&P 500 and Nasdaq inched to all-time

highs on Wednesday, extending a record-setting run as investors'

optimism about the global economy remained strong, while a steep

drop in FedEx shares limited further gains.

All three major indexes were on pace for their sixth

straight session of gains, building on a rally kicked off last

week by expectations of an initial U.S.-China trade deal.

Analysts said the trade agreement, announced on Friday,

removed a major risk for global equity markets, leaving stocks

with slightly more room to rise in what is left of 2019.

"The trade truce with China has really set the backdrop for

a continued move higher to the end of the year," said Chris

Zaccarelli, Chief Investment Officer, Independent Advisor

Alliance, Charlotte, North Carolina.

"I don't see a huge rally, just a slow drip."

The benchmark S&P 500 hit its fifth consecutive record high

on Wednesday, its longest streak since January 2018.

However, holding back gains on the index was a near 10%

drop in FedEx FDX.N shares after the U.S. parcel delivery

company lowered its fiscal 2020 profit forecast on heavy

expenses, slowing global trade and the fallout from its breakup

with Amazon.com Inc AMZN.O .

The profit warning from FedEx pressured shares of rival

United Parcel Service Inc UPS.N , with the Dow Jones Transport

Average .DJT down 1.1%.

The market has also largely shrugged off the almost certain

impeachment of President Donald Trump as the House of

Representatives gears up for a historic vote later in the day on

two charges accusing him of abusing his power and obstructing

Congress. Trading history during the impeachment of President Bill

Clinton and the resignation of President Richard Nixon suggests

Wall Street has little to worry about. At 11:57 a.m. ET the Dow Jones Industrial Average .DJI was

up 1.44 points, or 0.01%, at 28,268.60, the S&P 500 .SPX was

up 2.41 points, or 0.08%, at 3,194.93 and the Nasdaq Composite

.IXIC was up 19.75 points, or 0.22%, at 8,843.11.

The healthcare sector .SPXHC was boosted by Eli Lilly & Co

LLY.N , which gained 3.4% after Morgan Stanley upgraded the

stock to "overweight".

Advancing issues outnumbered decliners by a 1.24-to-1 ratio

on the NYSE and for a 1.02-to-1 ratio on the Nasdaq.

The S&P index recorded 32 new 52-week highs and no new low,

while the Nasdaq recorded 113 new highs and 40 new lows.

The S&P 500 and the Clinton impeachment Image https://tmsnrt.rs/2S3ucgo

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