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Dow, S&P 500 hit record closes as investors digest trade news

Published 11/07/2019, 04:45 PM
© Reuters. Traders work on the floor at the NYSE in New York
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By Caroline Valetkevitch

NEW YORK (Reuters) - The Dow and S&P 500 notched record closing highs on Thursday as the latest signs of progress in U.S.-China trade relations relieved investors, but a report raising fresh worries about the outlook for a deal limited the day's gains.

China said it had agreed with the United States to remove tariffs in phases, while state-owned Xinhua News Agency said Beijing was also considering removing restrictions on poultry imports.

But indexes pared gains in afternoon trading after a Reuters report, citing sources, said that the White House's plan to roll back China tariffs faces internal opposition and that no final decision has been made yet.

An interim U.S.-China trade deal is expected to include a U.S. pledge to scrap tariffs scheduled for Dec. 15.

"Any kind of uncertainty there, with the market at all-time highs, and it's easy for traders and institutions to press the sell button and take some money off the table," said Alan Lancz, president, Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio.

The latest batch of earnings offered some upbeat news.

The S&P 500 technology index (SPLRCT) ended up 0.7%, with shares of Qualcomm Inc (O:QCOM) up 6.3% after it forecast current-quarter profit above analysts' estimates.

Together with Qualcomm, other chipmakers, which have a sizeable exposure to China, also rose, propping the Philadelphia Semiconductor index (SOX) up 0.7%.

The trade-sensitive industrials sector (SPLRCI) finished up 0.2%.

The Dow Jones Industrial Average (DJI) rose 182.24 points, or 0.66%, to 27,674.8, the S&P 500 (SPX) gained 8.4 points, or 0.27%, to 3,085.18 and the Nasdaq Composite (IXIC) added 23.89 points, or 0.28%, to 8,434.52.

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The day's gains resumed the recent record run for stocks, which have been bolstered, along with trade deal hopes, by some upbeat earnings.

"Corporate earnings, while down year over year, are better than many had expected, and that's a plus," said Oliver Pursche, chief market strategist of Bruderman Asset Management in New York.

Also on Thursday, Ralph Lauren Corp (N:RL) surged 14.7% after it topped second-quarter profit expectations, helped by a tighter control on expenses and strong demand for its Polo shirts and tweed jackets in China and Europe.

On the down side, Expedia Group Inc (O:EXPE) plunged 27.4% as the online travel booking company missed quarterly profit estimates.

Declining issues outnumbered advancing ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favored advancers.

The S&P 500 posted 54 new 52-week highs and five new lows; the Nasdaq Composite recorded 118 new highs and 85 new lows.

Volume on U.S. exchanges was 7.92 billion shares, compared with the 6.83 billion-share average for the full session over the last 20 trading days.

Latest comments

what impact on gold and silver... i am from india and i have short position (selling positions) because of downfall... what you think for tomorrow
Once again this chatter about resolving the China tariffs is a bunch of Trumpian hogwash. He floats this stuff out there to juice the markets and then nothing further ever happens with the trade talks.
It is the Fed itself that is buying the stock. What a manipulator! Printing money and weaken the dollar, making the 0.1% rich people get richer, and the hardworking people with fixed income suffer more! The end of Dollar and Fed is near!
epic level but the rumor sell the news... what happens when the economy has turned into a penny stock thanks to trading algos
Monday, hope from China = +0.5%, Tuesday, hope from USA = +0.7% , Wednesday worry= -0.01%, Thursday, hope from both sides = +0.8%, Friday, better than very low expectations = +1.2%. Same every week.
again with the trade deal hopes.. people are going to get burned
I wouldnt touch this with a ten foot pole
Who the heck is buying at these levels??? Oh yeah.. the fed
everyone seems to know the market is overvalued but you know the big institutions can't handle the loss so they pump until those pessimists buy from them.
Exactly. Wonder how hard the drop will be? Even a kid knows that something is strange happening.
Who wants to be left holding the bag on this sucker rally. All the big players have already left the building. *****even some of them are giving a warning
China is the Trade War Winner !! U.S. only got 18 months of turbulance !!
the EU Allies are the total losers because of it....
Don't buy into this nonsense!! DO NOT FORGET!! 65% of hedge funds shorted the Brexit deal and lost everything!! By the end of December they will have to liquidate valuable stock to balance the books. There is a DUMP coming in the next 7 weeks!!
A huge dump on its way. They pump it as much as they can, also to convince the last ones to jump in.
These markets are attracting normal people to put savings in it and big investors are taking their money out of the markets. Markets will go down soon. Please be smart and take your money out.
I have short position in future @27036 levels it may seems overbought so should i wait or exit
This is a question that NO ONE can EVER answer.
Hold short and buy long just in case it won't go as planned.
between trump and xi, one of them is a loser right now. take your pick. lmao
trump has finally lost the war
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