Wall Street posts records amid trade optimism; Boeing juices Dow

By Lewis Krauskopf (Reuters) - Wall Street's main indexes posted record closing highs on Monday after President Donald Trump said an initial U.S.-China trade pact would be signed soon, while Boeing gave the Dow a big boost after the planemaker ousted its chief executive officer. Boeing Co shares, which have a particularly big influence on the Dow Jones Industrial Average, gained 2.9% and also lifted the S&P 500 industrials sector

Reuters December 24, 2019 04:05:54 IST
Wall Street posts records amid trade optimism; Boeing juices Dow

Wall Street posts records amid trade optimism Boeing juices Dow

By Lewis Krauskopf

(Reuters) - Wall Street's main indexes posted record closing highs on Monday after President Donald Trump said an initial U.S.-China trade pact would be signed soon, while Boeing gave the Dow a big boost after the planemaker ousted its chief executive officer.

Boeing Co shares, which have a particularly big influence on the Dow Jones Industrial Average, gained 2.9% and also lifted the S&P 500 industrials sector <.SPLRCI>. CEO Dennis Muilenburg's exit followed a prolonged crisis in which Boeing halted production of its best-selling 737 MAX jetliner following two fatal crashes.

Trump over the weekend said the United States and China would "very shortly" sign their so-called Phase 1 trade pact, which was announced earlier this month and has helped propel the U.S. stock market to records.

The S&P 500 notched a record closing high for a third straight session on Monday and hit an intraday all-time high for an eighth straight session. The Nasdaq closed at a record high for an eighth straight session.

“The stream of news has continued to favor the bullish bias, so there really hasn’t been a reason for people to sell, and you’ve got that fear of missing out that has kind of kicked in the last month and a half," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

Additionally, China will lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year.

"The key for businesses is that tariffs may not escalate further from this point," said Mona Mahajan, U.S. investment strategist with Allianz Global Investors in New York. "That’s critical for business confidence and the overall backdrop in which they’re operating."

The Dow Jones Industrial Average <.DJI> rose 96.44 points, or 0.34%, to 28,551.53, the S&P 500 <.SPX> gained 2.79 points, or 0.09%, to 3,224.01 and the Nasdaq Composite <.IXIC> added 20.69 points, or 0.23%, to 8,945.65.

Energy <.SPNY> and industrials were the best-performing S&P 500 sectors, while utilities <.SPLRCU> lagged the most.

Trading volume is expected to be sparse in a trading week shortened by the Christmas holiday. On Monday, roughly 5.9 billion shares changed hands on U.S. exchanges, well below the 7.2 billion daily average over the last 20 sessions.

The benchmark S&P 500 has climbed more than 28% so far in 2019, helped by improving investor sentiment over trade relations, interest rate cuts by the Federal Reserve and optimism the economy will avoid a severe downturn at least in the near term.

Data on Monday showed new orders for U.S.-made capital goods barely rose in November and shipments fell, suggesting business investment will probably remain a drag on economic growth in the fourth quarter.

In other company news, Apache Corp shares soared 17.3% after it and French rival Total announced a joint venture to develop a project off Suriname in a deal that gives the U.S. oil and gas producer a cash injection.

Advancing issues outnumbered declining ones on the NYSE by a 1.23-to-1 ratio; on Nasdaq, a 1.07-to-1 ratio favored advancers.

The S&P 500 posted 47 new 52-week highs and no new lows; the Nasdaq Composite recorded 142 new highs and 37 new lows.

(Reporting by Lewis Krauskopf; Additional reporting by Manas Mishra and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel, Lisa Shumaker and Dan Grebler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.