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Wall Street hits record high on energy, tech boost

Stock MarketsNov 04, 2019 11:56AM ET
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By Arjun Panchadar

(Reuters) - Gains in technology and energy shares pushed Wall Street's three main indexes to record highs on Monday, as hopes of a U.S.-China trade deal and an improving domestic economy boosted risk appetite.

Washington and Beijing said on Friday they had made progress in defusing an economically damaging trade war, with U.S. officials indicating that a deal could be signed this month.

Adding to the optimism, Commerce Secretary Wilbur Ross said on Sunday licenses for U.S. companies to sell components to China's Huawei Technologies Co Ltd would come "very shortly".

Eight of the 11 major S&P 500 sectors were higher, with the energy shares (SPNY) gaining the most on the back of higher oil prices. The sector along with technology shares (SPLRCT) provided the biggest boost to the benchmark index.

Helping the tech sector was a rally in trade-sensitive chip stocks, which also drove the Philadelphia Semiconductor index (SOX) to a record high.

"Signing these deals take time. All that is needed for markets to be happy right now is for an agreement to be announced," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

"The earnings period was certainly enough to support current stock prices. It wasn't good enough to lead stocks higher but not bad enough for them to go any lower," he added.

The third-quarter earnings season has been fairly upbeat, with 76% of the 360 S&P 500 companies that have reported results so far beating profit expectations, according to Refinitiv data.

Last week's interest rate cut by the Federal Reserve, growing expectations of a trade deal and a better-than-feared October jobs growth report have been the main catalysts of the recent rally.

A report on Monday, however, showed new orders for U.S.-made goods fell more than expected in September and business spending on equipment was slightly weaker than initially thought, suggesting that manufacturing remains soft amid the ongoing trade war.

At 11:21 a.m. ET the Dow Jones Industrial Average (DJI) was up 136.74 points, or 0.50%, at 27,484.10, the S&P 500 (SPX) was up 14.22 points, or 0.46%, at 3,081.13 and the Nasdaq Composite (IXIC) was up 42.34 points, or 0.50%, at 8,428.74.

The biggest drag on the blue-chip Dow Jones index was a 2.6% drop in shares of McDonald's Corp (N:MCD) after the fast-food giant dismissed Chief Executive Steve Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy.

Under Armour Inc (N:UAA) fell 15.4% as it lowered its full-year revenue forecast for a second straight time, a day after it confirmed a federal probe related to its accounting practices.

In M&A activity, medical device maker Stryker Corp (N:SYK) said it would buy smaller rival Wright Medical Group (O:WMGI) for about $4 billion in cash. Shares in Wright Medical surged 32%, while Stryker fell 3.9%.

The S&P index recorded 59 new 52-week highs and no new lows, while the Nasdaq recorded 110 new highs and 21 new lows.

Wall Street hits record high on energy, tech boost
 

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Comments (10)
Hank Williams
Hank Williams Nov 04, 2019 2:14PM ET
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excited to see when Aramco shows reserves. maybe gasoline goes back to $.25 per gallon.
Bo TR
Bo TR Nov 04, 2019 2:00PM ET
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despite new height, dow is forming evening star pattern? low volume, no new buyers, reversal?
rafel oracion
rafel oracion Nov 04, 2019 1:50PM ET
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no matter what...trade war or no trade war, Dow S @ P NASDAQ always climb to all time high...Did you notice that?
bb blast
bb blast Nov 04, 2019 1:36PM ET
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am I the only one that thinks the market has lost all control and some huge crash is coming?
TA XVCI
TA XVCI Nov 04, 2019 1:06PM ET
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The market is up and so are VIX and gold. Strange? Yes. The market will be dumped soon. Not even the Germany’s recession in manufactering is a bad sign and all other data. Still it goes up. Will we see another winter scenario?
Katie Hollis
Katie Hollis Nov 04, 2019 11:43AM ET
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freaking joke there will be no China deal.... if it was going to happen, it would be done by now. We tease each other but fall short of ever crossing the finish line . Chinese Communist party has no intention on changing their trade practice
Max German
MaxiGE Nov 04, 2019 10:54AM ET
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always up
Fred Broman
fatherofmothers Nov 04, 2019 8:34AM ET
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Same heading, same story again and again! Ridiculous!
Andrew Hook
Andrew Hook Nov 04, 2019 8:34AM ET
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You know they won't say: because of FED loose money policy used to call QE, money is flowing on market but not on real economy. Phase 1 deal is not signed but sherpas need to make FED happy cause that Fake print money. Ridiculous for sure ;)
Bo TR
Bo TR Nov 04, 2019 8:11AM ET
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futures plunge as trade deal optimism fades
Joseph Lee
Joseph Lee Nov 04, 2019 8:11AM ET
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LOL!!!!
MWAN WAN
MWAN WAN Nov 04, 2019 8:11AM ET
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shameless pump...
Ozzy Goldberg
Ozzy Goldberg Nov 04, 2019 8:04AM ET
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I have a feeling that articles here are written by AI using Hope and random words in the title.
 
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