The New York Stock Exchange (NYSE) is seen on Wall Street in New York City, November 4, 2019. — AFP pic
NEW YORK, Dec 16 — All three main US stock indexes drifted into record territory early today as investors absorbed a new US-China trade deal and Beijing released some upbeat economic data.
Shares in Boeing were lower, however, following reports the company may slow or halt production of its 737 MAX jets as the timetable for getting them back in the air stretches out.
About 20 minutes into the day’s trading session, the benchmark Dow Jones Industrial Average was up 0.6 per cent to 28,312.55.
The broader S&P 500 rose 0.7 per cent to 3,191.82 while the tech-heavy Nasdaq gained 0.9 per cent, rising to 8,813.25.
US and Chinese officials on Friday announced a partial trade deal, with Washington canceling and reducing tariffs in exchange for Chinese pledges to increase purchases of US exports and reform its trade practices.
In a television appearance yesterday, US Trade Representative Robert Lighthizer said the deal was “totally done” and would be signed pending translation and legal reviews. Officials expect it to be signed in the first week of January.
Market watchers said investors may be largely discounting the chances the process could take a now turn for the worse.
“A deal must still be signed, including an agreement over a translated text, but the market is evidently optimistic that the deal will get finalized in early January as planned,” analysts at Briefing.com wrote.
Meanwhile, officials in Beijing released data showing China had had a better-than-expected pickup in the retail and industrial sectors in November, a spot of good news at the close of a difficult year for the world’s second-largest economy.
The Wall Street Journal reported yesterday that US aviation giant Boeing could disclose as soon as today whether it will slow or suspend 737 MAX production as the aircraft’s future is increasingly uncertain.
Shares on Boeing were down 2 per cent. — AFP