Tuesday, US stocks edged higher, and all 3 major Wall Street indexes marked record levels, as upbeat comments by President Trump on trade talks eclipsed some softer-than-anticipated economic data, as the DJIA posted its 100th record close since Trump took office.
President Trump said the United States and China were close to an agreement on the 1st phase of a deal, while stressing Washington’s support for protesters in Hong Kong, a point of contention between the world’s 2 largest economies.
Rising hopes for a trade deal between the world’s 2 largest economies, solid US economic indicators and a Q-3 corporate earnings season that has Topped lowered expectations have driven stocks higher. The 3 major indexes have now marked a record close in 5 of the past 8 sessions.
Also supporting stocks has been the Dovish turn by the Fed, which has cut interest rates 3X this year. Fed Chairman Powell said Monday that monetary policy was “well positioned” to support the strong labor market.
Investors are watching for signs on the health of the consumer for this Holiday shopping season.
Consumer confidence fell for a 4th month running in November but remained at levels sufficient to support a steady pace of consumer spending, according to data Tuesday.
A separate report showed that new home sales dropped in October, although data for the prior month was revised up, with purchases hitting their highest marks in over 12 years.
8ht of the 11 major S&P 500 sectors were higher.
The consumer discretionary sector rose 0.81% and provided the biggest boost, led by a 9.86% jump in shares of Best Buy (NYSE:BBY) following a strong Holiday-quarter profit forecast.
Tuesday, the major US stock market indexes finished at: DJIA +55.21 at 28121.59, NAS Comp +15.44 at 8647.92, S&P 500 +6.88 at 3140.52
Volume: Trade on the NYSE came in at 1.6-B/shares exchanged
- NAS Comp +30.3% YTD
- S&P 500 +25.3% YTD
- DJIA +20.6% YTD
- Russell 2000 +20.4% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish to Very Bullish in here.
Looking ahead: investors will be given a number of reports on Wednesday before Thanksgiving Day: Personal Income and Spending for October, Durable Goods Orders for October, the second estimate for Q-3 GDP, Pending Home Sales for October, the weekly reports for MBA Mortgage Applications and jobless claims, and the Fed’s Beige Book for December.
The US financial market will be closed for Thanksgiving Thursday, an open till 1p ET Friday.
Have a terrific Holiday weekend.