Stock Higher on Trade Deal Optimism…..
U.S. equities finished the last trading session of the week higher, with the S&P 500 again flirting with record territory, and as the major indexes notched a third-straight weekly advance. The equity markets were able to overcome early losses that came on the heels of Amazon’s profit miss and softer-than-expected outlook for the holiday season, with stocks getting a boost in afternoon action after reports that the U.S. and China are close to finalizing some sections of the “Phase-1” trade deal following a telephone conversation between the two nation’s trade representatives. The markets also shrugged off flared-up U.K. Brexit uncertainty after a recent reprieve earlier this week. Meanwhile, Dow member Intel’s results continued a recent string of upbeat figures from the chip sector. Treasury yields and the U.S. dollar were higher, with consumer sentiment improving versus last month, while crude oil and gold prices gained slight ground.
The Dow Jones Industrial Average (DJIA) increased 153 points (0.6%) to 26,958, the S&P 500 Index added 12 points (0.4%) to 3,022 and the Nasdaq Composite picked up 57 points (0.7%) to 8,243. In moderate volume, 770 million shares were traded on the NYSE and 1.9 billion shares changed hands on the Nasdaq. WTI crude oil moved $0.43 higher to $56.66 per barrel and wholesale gasoline was up $0.01 at $1.64 per gallon. Elsewhere, the Bloomberg gold spot price was $1.66 higher at $1,505.64 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies— rose 0.2% to 97.85. Markets were higher for the week, as the DJIA gained 0.8%, the S&P 500 Index advanced 1.3% and the Nasdaq Composite increased 1.9%.
The final October University of Michigan Consumer Sentiment Index was adjusted slightly lower to 95.5, from the preliminary figure of 96.0, where the Bloomberg estimate had expected it to remain. However, the index was above September’s 93.2 level and moved further away from the near three-year low posted in August. Both the current conditions and expectations components of the index were revised slightly lower but improved compared to the prior month. The 1-year inflation forecast fell to 2.5% from September’s 2.8% rate, and the 5-10 year inflation outlook dipped to 2.3% from 2.4%.
Treasuries were lower, with the yields on the 2-year and 10-year notes rising 5 basis points (bps) to 1.63% and 1.80%, respectively, while the 30-year bond rate was 2 bps higher at 2.28%.
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