US STOCKS-Wall Street hovers at record highs; FedEx sinks

Published 18/12/2019, 16:56
US STOCKS-Wall Street hovers at record highs; FedEx sinks
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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, Nasdaq up 0.1%, S&P flat

(Updates to open)

By Uday Sampath Kumar

Dec 18 (Reuters) - The S&P 500 and Nasdaq extended a record

rally on Wednesday, even as FedEx limited gains after cutting

its annual profit forecast for the second time this year.

FedEx FDX.N shares fell 9.2%, set for worst day since

September, after the U.S. parcel delivery company cut its fiscal

2020 profit forecast on heavy expenses, slowing global trade and

the fallout from its breakup with Amazon.com Inc AMZN.O .

A Wall Street rally, spurred by hopes of an initial

U.S.-China trade deal last week, propelled the S&P 500 and the

Nasdaq to record closing levels for four straight sessions.

All three major indexes are on pace for their sixth straight

session of gains and if the S&P 500 .SPX ends the day higher,

it will be its longest streak of record closes since January

2018.

The benchmark index has gained over 27% so far this year,

rising in all but two months as investors cheered three interest

rate cuts by the Federal Reserve and progress in trade relations

between Washington and Beijing.

"The market hitting new record highs on a daily basis is

largely based on some of the good macro news that we've had over

the past several weeks, indicating that a soft patch seems to

have abated," said Peter Cardillo, chief market economist at

Spartan Capital Securities in New York.

With little chance of another major update on trade progress

between the world's top two economies before the end of the

year, analysts say the market will likely stay around present

levels.

One of the risk factors still on the horizon is an almost

certain impeachment of President Donald Trump as the House of

Representatives gears up for a historic voting on two charges

accusing him of abusing his power and obstructing Congress.

At 10:16 a.m. ET the Dow Jones Industrial Average .DJI

was up 22.86 points, or 0.08%, at 28,290.02, the S&P 500 .SPX

was up 1.43 points, or 0.04%, at 3,193.95 and the Nasdaq

Composite .IXIC was up 5.77 points, or 0.07%, at 8,829.13.

The results from FedEx also pressured shares of rival United

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

.DJT down 1.3%.

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

LLY.N , which gained 3.1%, after Morgan Stanley upgraded the

stock to "overweight".

In results-driven moves, General Mills Inc GIS.N rose 1.1%

as strong demand for the Lucky Charms maker's pet food helped it

beat quarterly profit estimates.

Advancing issues outnumbered decliners by a 1.03-to-1 ratio

on the NYSE and a 1.20-to-1 ratio on the Nasdaq.

The S&P index recorded 25 new 52-week highs and no new low,

while the Nasdaq recorded 92 new highs and 27 new lows.

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

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