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S&P 500 approaches record high on U.S.-China trade progress

Published 10/25/2019, 03:10 PM
Updated 10/25/2019, 03:10 PM
S&P 500 approaches record high on U.S.-China trade progress

S&P 500 approaches record high on U.S.-China trade progress

By April Joyner

NEW YORK (Reuters) - The S&P 500 rose on Friday, briefly surpassing its record closing high, after Washington said it was close to finalizing parts of a trade pact with Beijing.

The benchmark index (SPX) hit a session high of 3,027.39, reaching above its closing record of 3,025.86 on July 26. It came within a point of overtaking its all-time high of 3,027.98 set during the July 26 session.

U.S. stocks added to marginal gains early in the session after the U.S. Trade Representative's office said that deputy-level trade talks would continue. President Donald Trump also struck a hopeful tone, saying that China wanted "to make a deal very badly."

The developments rounded off a strong week for equity markets, which were boosted by a clutch of better-than-expected third-quarter earnings reports. The S&P 500 and the Nasdaq were both set for their biggest weekly percentage gain in seven weeks.

Intel Corp's (O:INTC) quarterly report added to Friday's upbeat sentiment. The chipmaker's shares jumped 7.6%, on track for their largest daily percentage gain since January 2018, after the company beat Wall Street revenue and profit estimates and raised its full-year revenue forecast.

The gain in Intel shares helped propel the Philadelphia SE Semiconductor index (SOX) to a record high.

Trade optimism and Intel's gains outweighed losses in shares of Amazon.com Inc (O:AMZN), which fell after the e-commerce giant forecast revenue and profit for the crucial holiday quarter below estimates. Amazon shares were last down 1.7%, off their session low.

"The market reaction to Amazon wasn't as bad as people thought, which created a positive atmosphere," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "Then the trade headlines - I think the market liked that as well."

The Dow Jones Industrial Average (DJI) rose 149.4 points, or 0.56%, to 26,954.93, the S&P 500 (SPX) gained 10.93 points, or 0.36%, to 3,021.22 and the Nasdaq Composite (IXIC) added 46.16 points, or 0.56%, to 8,231.96.

Boeing Co (N:BA) shares dropped 1.5% after Indonesian authorities looking into October 2018's Lion Air crash said the world's largest planemaker failed to grasp risks in the design of cockpit software on its 737 MAX jet.

Shares of VF Corp (N:VFC) fell 6.7% after the apparel maker reported lower-than-expected quarterly revenue as its popular Vans and Timberland brands faced intensified competition.

Charter Communications Inc (O:CHTR) shares gained 6.9%. The cable operator posted better-than-expected quarterly results, fueled by customer growth in its broadband services business.

The next round of earnings due next week includes Apple Inc (O:AAPL), Alphabet Inc (O:GOOGL), Pfizer Inc (N:PFE) and Merck & Co Inc (N:MRK).

Advancing issues outnumbered declining ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 1.74-to-1 ratio favored advancers.

The S&P 500 posted 40 new 52-week highs and three new lows; the Nasdaq Composite recorded 80 new highs and 55 new lows.

Latest comments

better then expectzd earnings when u set expectations so weak just valuate q3 earnings with YoY and Q2 earnings and then u see its all bad
How market could still go up ? Who's buying ?
Feds printing easy fiat money
trade volume is gone nyse puts this week 56B on volume in complete us market when its average 381B
I did today
United states is doing very well implies China is losing... yeah that'll make them want to close a deal.
Few weeks ago China and Russia were working on paying oil in other currency than dollar. With the huge US debt, US is doing well because of King dollar. China already signed a soy deal with Brasil and Russia. Guess what winter Time in Russia, summer in Brasil . So China is still buying US soy but thing are about to changed. Just an opinion. ;)
Who was asking where the 120B$ "liquidity injection" was going?
When will the markets wake up and realize that this it the American president manipulating the markets for his own personal gains?  He pumps on Friday and Tweets on Sunday, sending the markets crashing on Monday.
Golden opportunity to sell
this what you call free money. pull up a E-mini or NQ chart and wait for a Trump tweet and get paid! thats simple lol
84%sellers to 16% buyers *******
where do you can see ?
I am glad CNBC knows more about a trade deal than chinese and american leaders
Oil is ridiculous! no people, future is not that bright...
Gold up. Market up. Something Fishy. I am waiting for the Donald to say something.
Gold is up because of the dead head Fed announcement next week. A cut..
volume low on these all time highs, market gonna correct very soon.
Couldn’t agree more
Hi Justin, I was seing the Dow Inc, and this stock I cant find what you say. At least in this stock.
let's be honest guys no one knows what's fueling the up trend
what? agreement by a phone call? is that a joke?
but a perfect call. That change everything ;) lol
Have amot of cash here. Have not been able to execute much over last week not many opportunities. Did get some crm at 140 and BA at 330. But looking for pullback. Maybe they do not cut next week and market may drop.
Craaaaazyyy how te market is pumped up.
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