US close: Markets reach records amid reports of a trade deal
By Josh White
Date: Thursday 12 Dec 2019
(Sharecast News) - Wall Street markets broke fresh records on Thursday, after amid reports that Washington and Beijing had reached a deal to avoid fresh punitive tariffs planned by the Trump administration for 15 December.
The Dow Jones Industrial Average closed up 0.79% at 28,132.05, the S&P 500 added 0.86% to 3,168.57, and the Nasdaq Composite was 0.73% firmer at 8,717.32.
Those were record high closes for the S&P 500 and the Nasdaq Composite, while the Dow managed to reach a new intraday record high during the session.
At the open, the Dow was 290.28 points higher, after it saw out the previous session relatively flat following the latest policy announcement from the Federal Reserve.
Members of the Federal Open Market Committee voted to keep the target range for the Fed funds rate at between 1.5% and 1.75%, as expected, explaining that the decision was an "appropriate" one to sustain economic expansion, and keep inflation near its 2.0% target.
Early on Thursday's session, indices skyrocketed into the green after Donald Trump took to Twitter to tell the world that the US and China were "getting very close to a big deal" on trade.
"They want it, and so do we!" Trump said.
Dow Jones cited sources as saying that US negotiators have offered to cut existing tariff rates by up to 50% on $360bn of Chinese imports.
It said US negotiators had also offered to cancel new China tariffs that had been due to kick on Sunday.
It was understood that the US would reimpose the original tariff level if China fails to carry out its pledges.
Dow Jones said the US made the tariff offer in recent days as both sides strive for a trade deal.
Later in the day, Bloomberg reported that an interim "phase one" trade deal - something investors the world over had been holding their collective breath for - had been reached between the US and China, and was now awaiting Trump's signature.
On the data front, the number of Americans filing for unemployment benefits rose more than expected last week, hitting a more than two-year high, according to data from the Labor Department.
US initial jobless claims increased by 49,000 to 252,000, versus expectations for a smaller jump to 213,000.
That marked the highest level for claims since 30 September 2017, when it was 257,000.
Elsewhere, US producer prices were unexpectedly flat in November as increases in the price of food and gas were offset by falling services costs - pointing to muted inflation despite a recent uptick in consumer prices.
Economists had forecast the PPI would rise 0.2%.
The Labor Department revealed the flat reading in its producer price index for final demand last month, which followed a 0.4% surge in October.
In the 12 months ending November, the PPI gained 1.1% year-on-year, matching October's rise - the smallest increase since October 2016.
In corporate news, General Electric was ahead 4.28% after UBS analysts upgraded the stock to 'buy' from 'hold, and raised its price target to $14 from $11.50.
Southwest Airlines was 0.96% firmer after it said it had reached a $125m deal with Boeing over the grounding of the 737 MAX fleet, which it would share with its employees, while the aircraft manufacturer was 1.06% weaker.
Delta Air Lines was ahead 2.92% after it posted expectations for earnings per share of between $6.75 and $7.75 in 2020, alongside revenue growth of 4% to 6%.
On the downside, Facebook was off 2.72% after reports the Federal Trade Commission was mulling an injunction against the web giant over antitrust concerns around its multitude of products.
Dow Jones - Risers
Cisco Systems Inc. (CSCO) $45.67 3.14%
JP Morgan Chase & Co. (JPM) $138.02 2.86%
Chevron Corp. (CVX) $118.81 2.22%
Goldman Sachs Group Inc. (GS) $226.05 2.20%
Exxon Mobil Corp. (XOM) $70.34 2.00%
Caterpillar Inc. (CAT) $146.78 1.93%
American Express Co. (AXP) $122.64 1.66%
United Technologies Corp. (UTX) $149.41 1.45%
International Business Machines Corporation (CDI) (IBM) $135.32 1.17%
Unitedhealth Group Inc. (UNH) $283.61 1.11%
Dow Jones - Fallers
Boeing Co. (BA) $346.29 -1.06%
3M Co. (MMM) $168.56 -0.11%
Procter & Gamble Co. (PG) $124.57 -0.07%
Dowdupont Inc. (DWDP) $30.52 0.00%
Home Depot Inc. (HD) $212.04 0.02%
Walt Disney Co. (DIS) $147.76 0.12%
Verizon Communications Inc. (VZ) $61.17 0.15%
Apple Inc. (AAPL) $271.46 0.25%
Johnson & Johnson (JNJ) $141.34 0.26%
Visa Inc. (V) $182.64 0.35%
S&P 500 - Risers
Wynn Resorts Ltd. (WYNN) $132.27 9.47%
Advanced Micro Devices Inc. (AMD) $42.59 7.90%
L Brands Inc (LB) $18.48 6.82%
Gap Inc. (GPS) $17.02 5.26%
Western Digital Corp. (WDC) $53.73 5.21%
Stanley Black & Decker Inc. (SWK) $167.76 5.12%
Fluor Corp. (FLR) $17.66 5.06%
Svb Financial Group (SIVB) $251.21 4.92%
Baker Hughes Company Class A (BKR) $23.76 4.76%
Mylan Inc. (MYL) $19.68 4.63%
S&P 500 - Fallers
Sba Communications Corp. (SBAC) $228.05 -3.27%
Regency Centers Corp. (REG) $60.82 -2.92%
Lennar Corp. Class A (LEN) $58.06 -2.78%
D. R. Horton Inc. (DHI) $54.36 -2.77%
Facebook Inc. (FB) $196.75 -2.72%
Public Storage (PSA) $204.25 -2.70%
PulteGroup Inc. (PHM) $39.63 -2.65%
Healthpeak Properties, Inc (PEAK) $32.31 -2.65%
Welltower Inc (WELL) $79.13 -2.51%
Align Technology Inc. (ALGN) $268.39 -2.49%
Nasdaq 100 - Risers
Wynn Resorts Ltd. (WYNN) $132.27 9.47%
Western Digital Corp. (WDC) $53.73 5.21%
Mylan Inc. (MYL) $19.68 4.63%
Qurate Retail Inc. (QRTEA) $8.62 4.11%
Fastenal Co. (FAST) $37.65 3.91%
Trip.com Group Limited (TCOM) $33.21 3.88%
Microchip Technology Inc. (MCHP) $103.16 3.83%
Activision Blizzard Inc. (ATVI) $58.56 3.68%
Baidu Inc. (BIDU) $120.54 3.58%
Micron Technology Inc. (MU) $50.97 3.47%
Nasdaq 100 - Fallers
Workday, Inc. (WDAY) $159.74 -3.19%
Facebook Inc. (FB) $196.75 -2.72%
Align Technology Inc. (ALGN) $268.39 -2.49%
Incyte Corp. (INCY) $92.85 -2.19%
NetEase Inc. Ads (NTES) $304.25 -2.01%
Mondelez International Inc. (MDLZ) $52.98 -1.76%
Autodesk Inc. (ADSK) $177.90 -0.97%
O'Reilly Automotive Inc. (ORLY) $441.20 -0.78%
NortonLifeLock Inc. (NLOK) $26.18 -0.76%
Henry Schein Inc. (HSIC) $68.82 -0.41%
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