Traders work on the floor at the New York Stock Exchange. — Reuters pic
NEW YORK, Nov 23 ― Wall Street rose yesterday with help from positive comments from Washington and Beijing about progress on efforts to reach a US-China trade deal, and from upbeat domestic economic data.
US President Donald Trump told Fox News a trade deal was “potentially very close” following remarks by President Xi Jinping that Beijing wanted to work out an initial agreement.
The S&P 500 and the Dow were on track for their biggest daily gains in a lackluster week marked by uncertainty about trade. In previous days, one report suggested the delay of a trade truce to 2020, while US lawmakers backed two bills backing protesters in Hong Kong.
“It's tied back to the on-again, off-again narrative that's been the consistent theme regarding a potential trade deal with China. Our President says we're on today so the market's responding accordingly,” said Mike Loewengart, vice president for investment strategy at E*Trade Financial Corp in New York.
But investors were also showing skepticism as the Hong Kong situation added complexity, he said.
Meanwhile, the latest economic data underscored a resilient domestic economy as US manufacturing output accelerated in November to its fastest pace in seven months and services activity picked up more than expected.
But 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.
The Dow Jones Industrial Average rose 119.98 points, or 0.43 per cent, to 27,886.27, the S&P 500 gained 6.03 points, or 0.19 per cent, to 3,109.57 and the Nasdaq Composite added 4.11 points, or 0.05 per cent, to 8,510.32.
Eight of the 11 major S&P 500 sectors were trading higher, led by a 0.68 per cent gain in financials.
Nordstrom Inc jumped 10.2 per cent after the retailer raised its 2019 forecast and reported third-quarter profit above expectations. Gap Inc shares were up 4.5 per cent after it beat lowered quarterly profit estimates days after the retailer cut its annual forecast and replaced its longtime chief executive officer.
Shares of Tesla Inc fell 6.3 per cent as Wall Street questioned the look of its newly unveiled electric pickup truck, whose “armoured glass” windows shattered in a demonstration.
Intuit Inc dropped 5.7 per cent after the income-tax filing software maker forecast second-quarter profit below estimates.
Advancing issues outnumbered declining ones on the NYSE by a 1.69-to-1 ratio; on Nasdaq, a 1.47-to-1 ratio favoured advancers.
The S&P 500 posted 17 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 49 new highs and 73 new lows. ― Reuters