(Reuters) – Wall Street’s main indexes notched fresh record highs on Wednesday, as data pointed to a resilient domestic economy and investors remained optimistic about a resolution to the U.S.-China trade war.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 6, 2019. REUTERS/Brendan McDermid/File Photo
U.S. economic growth picked up slightly in the third quarter, rather than slowing as initially reported, while consumer spending rose steadily in October, suggesting a moderate pace of economic expansion in the fourth quarter.
“So long as the consumer stays somewhat strong, the markets are in decent shape,” said Sahak Manuelian, managing director, equity trading at Wedbush Securities in Los Angeles.
Consumer discretionary stocks .SPLRCD rose 0.67%.
Data also showed new orders for key U.S.-made capital goods increased by the most in nine months in October.
President Donald Trump’s comments on Tuesday that the United States was in the “final throes” of work on an agreement added to optimism.
“There are not a lot of details (on the trade deal), but it has certainly fueled this ‘hope trade’ and so long as nothing gets signed, the market will grind its way higher,” Manuelian said.
The main indexes have scaled record levels this month on trade truce hopes, upbeat third-quarter earnings and a dovish Federal Reserve.
At 11:24 a.m. ET, the S&P 500 .SPX was up 4.54 points, or 0.14%, at 3,145.06 and the Nasdaq Composite .IXIC was up 34.81 points, or 0.40%, at 8,682.75.
However, the Dow Jones Industrial Average .DJI was down 13.23 points, or 0.05%, at 28,108.45, weighed down by Boeing Co (BA.N).
The planemaker’s shares slipped 0.83% after the Federal Aviation Administration said it would be the only issuer of airworthiness certificates for new 737 MAX planes, potentially affecting the timeline of starting deliveries by December.
Boeing was also hit by a report that 777X’s fuselage ruptured during a September stress test.
Deere & Co (DE.N) dropped 4.7% as the farm equipment maker warned of lower earnings in 2020.
Under Armour Inc (UAA.N) jumped 3.9% as Raymond James upgraded the sportswear maker to “strong buy”.
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 1.31-to-1 ratio on the NYSE and by a 1.55-to-1 ratio on the Nasdaq.
The S&P index recorded 34 new 52-week highs and no new low, while the Nasdaq recorded 82 new highs and 25 new lows.
Reporting by Arjun Panchadar and Manas Mishra in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila
