S&P 500, Dow open at record highs on trade deal optimism

Cornelia Mascio
Novembre 8, 2019

Energy (+1.6%) topped today's S&P sector leaderboard as WTI crude oil climbed 1.4% to $57.15/bbl, followed by communication services (+0.7%), information technology (+0.7%) and financials (+0.7%). However, they S&P and Dow still closed at record levels.

Of the 430 companies in the S&P 500 that have reported earnings through Thursday, almost three-quarters have beaten analyst expectations, according to Refinitiv.

USA stocks surged Thursday after China said it has worked out a deal with the United States that removes some tariffs in a phase one trade deal.

Bond prices fell sharply. JPMorgan Chase climbed 1.2%. The yield on the 10-year Treasury rose to 1.92%.

Real estate companies and utilities, also considered safer investments, lagged the market.

S&P index, 8.42 points or 0.27% at 3085.20.

The Dow Jones Industrial Average rose 97.60 points, or 0.36 per cent, at the open to 27,590.16. The Nasdaq added 55 points, or 0.7%, to 8,465.

The Philadelphia Semiconductor index also jumped 1.5% as chipmakers, which have a sizeable exposure to China, rose.

Overseas, the benchmark Stoxx Europe 600 rose 0.3%.

Volume on US exchanges was 7.92 billion shares, compared with the 6.83 billion-share average for the full session over the last 20 trading days. Both nations have agreed to a truce, but the terms are still vague and they have yet to sign a deal.

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

BROKEN RECORDS: The S&P 500 has been on a steady rally for the past month, following the announcement of an initial U.S. The United States and China agreed to a preliminary deal in mid-October. Last week it notched three record-setting days as investors grew more encouraged about prospects for economic growth because of solid economic and earnings reports. The NASDAQ was higher but still off its record close level.

EARNINGS SCORECARD: It's a busy day for corporate earnings as the latest round of results nears the finish line.

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

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