US STOCKS-Wall Street rides trade optimism to record highs

Published 20/12/2019, 16:43
Updated 20/12/2019, 16:45
© Reuters.  US STOCKS-Wall Street rides trade optimism to record highs

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* Nike dips as North America revenue disappoints

* Carnival Corp top pct gainer on S&P 500

* Consumer spending rose 0.4% last month

* Indexes up: Dow 0.3%, S&P 0.4%, Nasdaq 0.2%

(Updates to open)

By Uday Sampath Kumar

Dec 20 (Reuters) - U.S. stocks inched to fresh record highs

on Friday, as investors remained optimistic about improving

trade relations between Washington and Beijing in the run-up to

the holiday season.

All three major stock indexes have been trading at record

levels for over a week, boosted by the announcement of an

initial U.S.-China trade agreement and upbeat economic

indicators.

U.S. Treasury Secretary Steven Mnuchin said on Thursday the

long-awaited trade deal had been penned down and would be signed

in early January, dispelling fears of another escalation in the

tariff dispute.

Beijing, however, later dodged questions about specific

details about the agreement. "While we're waiting to hear the details of a deal, what

we're not doing is increasing tariffs," said Art Hogan, chief

market strategist at National Securities in New York. "We're not

escalating, and that's what the market cares about."

The S&P 500 .SPX hit a record high for the seventh

straight session on Friday, its longest streak since October

2017. With gains of nearly 28% this year, the benchmark index is

eyeing its best annual performance since 2013.

The Dow Industrials .DJI and Nasdaq .IXIC touched

all-time highs for the second straight session.

Markets are likely to become volatile on Friday due to

"quadruple witching," where investors unwind positions in

futures and options contracts before their expiration.

At 10:12 a.m. ET the Dow Jones Industrial Average .DJI was

up 82.01 points, or 0.29%, at 28,458.97, the S&P 500 .SPX was

up 11.94 points, or 0.37%, at 3,217.31 and the Nasdaq Composite

.IXIC was up 20.43 points, or 0.23%, at 8,907.65.

The Commerce Department said on Friday consumer spending

rose 0.4% last month, in line with expectations, as households

stepped up purchases of motor vehicles and spent more on

healthcare.

Nike Inc NKE.N fell 1.7% after the world's largest

sportswear maker reported lower-than-expected growth in revenue

from North America. Boeing Co's BA.N biggest supplier, Spirit AeroSystems Inc

SPR.N dropped 1.4% after saying it would temporarily halt

production of 737 MAX parts beginning Jan. 1. Boeing shares fell

1.0%. Carnival Corp CCL.N rose 8.5% and was the biggest

percentage gainer on the S&P 500, after the cruise operator

forecast a 2020 profit largely above estimates. Advancing issues outnumbered decliners for a 1.85-to-1 ratio

on the NYSE and 1.13-to-1 on the Nasdaq.

The S&P index recorded 66 new 52-week highs and no new low,

while the Nasdaq recorded 110 new highs and 21 new lows.

S&P 500 Records https://tmsnrt.rs/2Mf6LNo

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