US STOCKS-Wall St higher on trade optimism, upbeat economic data

Reuters | New York | Updated: 23-11-2019 00:15 IST | Created: 23-11-2019 00:14 IST
US STOCKS-Wall St higher on trade optimism, upbeat economic data
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Wall Street rose on Friday as upbeat domestic economic data and positive comments from Washington and Beijing calmed investor worries about a delay in a potential trade deal, which had pushed U.S. stocks off record highs earlier in the week.

Trump told Fox News a trade deal was "potentially very close", adding to optimism following remarks by President Xi Jinping that Beijing wanted to work out an initial agreement. Reports earlier in the week had indicated a truce could be delayed to 2020. Global stocks have retreated from near two-year highs scaled in recent weeks on hopes of a resolution to the damaging tariff war.

"Deal means actual hard facts and so even if people meet and get together and talk a little bit more, we don't see anything substantial happening," said Jeanette Garretty, managing director and principal at Robertson Stephens Wealth Management in San Francisco. Meanwhile, latest economic data underscored a resilient domestic economy. U.S. manufacturing output accelerated in November to its fastest pace in seven months and services activity picked up more than expected.

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. Seven of the 11 major S&P 500 sectors were trading higher, led by a 0.65% gain in financials.

At 1:11 a.m. ET the Dow Jones Industrial Average was up 92.51 points, or 0.33%, at 27,858.80, the S&P 500 was up 6.39 points, or 0.21%, at 3,109.93 and the Nasdaq Composite was up 11.09 points, or 0.13%, at 8,517.30. A report on Friday said a hedge fund founded by billionaire Ray Dalio has bet more than $1 billion that stock markets around the world will fall by March, which Dalio denied.

Among stocks, Nordstrom Inc jumped 9% after the retailer raised its 2019 forecast and reported third-quarter profit above expectations. Shares of Tesla Inc fell 5.6% as the design of its newly unveiled electric pickup truck received an underwhelming response.

Intuit Inc dropped 4.9% after the income-tax filing software maker forecast second-quarter profit below estimates. Advancing issues outnumbered decliners by a 1.77-to-1 ratio on the NYSE and by a 1.50-to-1 ratio on the Nasdaq.

The S&P index recorded 17 new 52-week highs and two new lows, while the Nasdaq recorded 45 new highs and 58 new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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