Dow, S&P 500, Nasdaq end at records on optimism on trade

Andrew Cummings
November 5, 2019

United States and Chinese officials confirmed Friday that they had made substantial progress and reached a "consensus on principles" in efforts to reach a deal, with Trump later telling the press that he would like to see a deal demonstratively signed somewhere in the USA by himself and Chinese President Xi Jinping.

U.S. President Donald Trump touted the stock market performances by tweeting: "Stock Market hits RECORD HIGH". Eastern time and was above its record close of 3,066.91 on Friday.

The S&P 500 is up 571.42 points, or 22.8%. The S&P 500 rallied 11.36 points, or 0.37 percent, to 3,078.27.

"It doesn't really feel that euphoric because we still have to get over the shock of what happened last December", Taylor said in an interview.

BANKING ON PROFITS: The widening gap in yields helps banks, which make money by borrowing money at short-term rates and lending it out at longer-term rates while pocketing the difference. With almost 363,000 shares traded before the bell, it was among the most actively-traded USA stocks.

Chevron (CVX) rose 4.6% and chipmaker Nvidia (NVDA) rose 3.9%.

In energy trading, benchmark crude oil dropped 12 cents to $56.42 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the global standard, rose 44 cents to $62.13 a barrel.

Financial stocks in the S&P 500 climbed 0.9%, aided by a 1.9% jump for Bank of America and a 1.8% gain for Citigroup. Barry Bannister, head of institutional equity strategy at Stifel, sees cyclical stocks doing better than defensive stocks into the middle of 2020, but he sees the S&P 500 falling back to 3,050 by the end of the year and rising modestly to 3,100 in 2020.

"While further tariff increases are no longer our base case, we believe the risks continue to lean in that direction, as a US-China deal that substantially reduces US tariffs continues to look much less likely than an eventual breakdown in talks that leads to renewed tariff escalation", Alec Phillips, Goldman Sachs' chief USA political economist wrote in a note to investors Monday.

The Canadian dollar was trading at 76.03 cents U.S., compared with Friday's average of 76.01 cents.

Under Armour shares slumped 18% after The Wall Street Journal reported that the sportswear maker's accounting practices are being probed by federal authorities.

But the shift doesn't necessarily mean the all-clear for the economy and the market.

Wall Street has less to focus on this week following last week's steady flow of corporate results and economic reports. Japan's market was closed for a holiday.

CHIPPED ARCHES: McDonalds fell 2.1% after the fast-food giant pushed out CEO Steve Easterbrook because he engaged in a consensual relationship with an employee in violation of company policy.

While the broader market rallied Monday, some stocks lagged behind.

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