US Markets

Wall St at record levels on trade hopes, robust economic data

Credit: REUTERS/BRENDAN MCDERMID

Wall Street's main indexes notched fresh record highs on Wednesday, as latest data pointed to a resilient domestic economy and investors remained optimistic about a resolution to the prolonged U.S.-China trade war.

By Arjun Panchadar

Nov 27 (Reuters) - Wall Street's main indexes notched fresh record highs on Wednesday, as latest data pointed to a resilient domestic economy and investors remained optimistic about a resolution to the prolonged U.S.-China trade war.

Data showed growth picked up slightly in the third quarter, rather than slowing as initially reported, while U.S. consumer spending rose steadily in October, suggesting the economy will probably maintain its moderate pace of expansion in the fourth quarter.

The data added to the upbeat mood on a trade deal, fueled by comments on Tuesday from President Donald Trump that the United States was in the "final throes" of work on an agreement.

"There's that drumbeat about an impending trade deal and that's going to keep stocks moving higher," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

The three major U.S. stock indexes have hit record highs this month on expectations of a trade truce and fairly solid third-quarter earnings.

At 10:05 a.m. ET, the S&P 500 .SPX was up 4.21 points, or 0.13%, at 3,144.73 and the Nasdaq Composite .IXIC was up 26.91 points, or 0.31%, at 8,674.84. But the Dow Jones Industrial Average .DJI was down 21.34 points, or 0.08%, at 28,100.34, weighed down by Boeing Co BA.N.

Shares of Boeing dipped 1.3% after the Federal Aviation Administration said it would be the only issuer of airworthiness certificates for all new 737 MAX planes, potentially affecting the planemaker's timeline of starting deliveries by December. Another report said Boeing 777X's fuselage split during a September stress test.

Data on Wednesday showed new orders for key U.S.-made capital goods increased by the most in nine months in October.

The Federal Reserve's three interest rate cuts this year have helped the domestic economy blunt the hit from the trade war.

Under Armour Inc UAA.N jumped 6.8% as Raymond James upgraded the sportswear maker's shares to "strong buy" from "outperform".

Deere & Co DE.N dropped 3.2% as the farm equipment maker warned of lower earnings in fiscal year 2020 after reporting a fall in quarterly profit.

Trading volumes are expected to be light ahead of the Thanksgiving Day holiday on Thursday and an early market close on Black Friday.

Advancing issues outnumbered decliners by a 1.65-to-1 ratio on the NYSE and by a 1.94-to-1 ratio on the Nasdaq.

The S&P index recorded 32 new 52-week highs and no new low, while the Nasdaq recorded 61 new highs and 14 new lows.

(Reporting by Arjun Panchadar and Manas Mishra in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila)

((Arjun.Panchadar@thomsonreuters.com; within U.S. +1-646-223-8780; outside U.S. +918067492767;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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