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Dow, S&P and Nasdaq trade after retail, trade optimism restores



U.S. stock indexes rose to record highs on Friday morning after retail sales rebounded to show growth in October and White House officials once again discussed prospects for a trade deal with China.

How are the main indicators developing?

Dow Jones Industrial Average

DJIA, + 0.53%

rose 143 points, or 0.5%, to 27 927, while the S&P 500 index

SPX, + 0.56%

gained 1

7 points or 0.6% to trade at 3.114. The Nasdaq Composite Index

COMP, + 0.59%

gained 56 points, or 0.7%, to 8 555.

All three indicators traded above their previous record highs and set new highs within Friday morning.

On Thursday, the Dow finished slightly lower, falling 1.63 points to 27,781.96, the day after a record closing came out. Meanwhile, the S&P 500 climbed to the top of the uncharted territory with an increase of 2.59 points, or 0.1%, to end 3 096.63 – the 21st record near 2019. The Nasdaq Composite reached 3.08 points on -low, drop below 0.1%, to end at 8 479.02.

For the week, the Dow is up by 0.7%, the S&P 0.5%, and the Nasdaq less than 0.6%.

Read: The Hindenburg Omen and Ohama Titanic Syndrome forms in a key stock market index

What is driving the market?

Stock markets have clung to insignificant gains this week as investors continue to hope that positive developments in US-China trade will soon justify recent record highs for major stock indices.

"Investors continue to adhere to every word related to the US-China trade war," says Russ Mold, Investment Director at AJ Bell. "White House economic adviser Larry Kudlow is reported to say that the ongoing negotiations between the two countries are" very constructive ", which was enough to stimulate stock markets up in the UK, continental Europe and much of Asia."

Kudlow on Thursday said negotiators were close to an agreement, but President Donald Trump was not yet ready to come out. Trump "likes what he sees, is not ready to commit, has not signed a commitment for phase one, we do not reach an agreement for phase one only," he told a Council of Foreign Affairs event, according to The Wall Street Journal.

U.S. Retail sales rebounded in October, rising 0.3% after a 0.3% decline in September, above the 0.2% growth expected by MarketWatch economists. With the exception of car and gasoline sales, sales rose 0.1%, below the consensus estimate of 0.4%

But US industrial production fell by a maximum of 17 months in October, by 0.8%, worse than the downturn expected by economists with 0.5% surveyed by MarketWatch. Industrial capacity in use dropped to 76.7 in October, its lowest level in just over two years.

The November Empire Index of the November Federal Reserve, an indicator of regional activity, also fell below expectations by 2.9 in November, down 1.1 from October and below expectations of economists at 5.0, according to a MarketWatch study .

Which stocks are in focus?

Stocks of Attached Materials Inc.

AMAT, + 9.35%

was expected to be in focus after the chip equipment company reported a drop in earnings a year ago at the end of Thursday, but exceeded Wall Street expectations. The company's outlook also backed earlier reports from the chip equipment industry pointing to a breakthrough for the broken semiconductor industry. Shares gained 10.1% on Friday.

Chip maker Nvidia Corp.

NVDA, -2.28%

at the end of Thursday predicted a return to earnings growth after four quarters of declines and beat its quarterly results. Shares fell 2.4% on Friday.

Shares of furniture maker RH

RH, + 7.48%

were up more than 6% since Friday after Warren Buffett Berkshire Hathaway Inc. [19659028] BRK.B, + 0.06%

BRK.A, + 0.03%

revealed in a regulatory filing that it had purchased 1.2 million shares of the company known before like Restoration Hardware. [19659007] Berkshire also discloses that it owns nearly 7.5 million shares in Occidental Petroleum Corp. .

OXY, + 3.46%

worth about $ 332 million at the end of the third quarter. In April, Berkshire allocated $ 10 billion to assist Occidental in its bid for Anadarko Petroleum Corp., giving the company an edge over Chevron Corp.

CVX, + 0.20% ,

who later bowed to the battle of Anadarko.

Stocks of J.C. Penney Co. Inc. . more than 7% after the department store reported losses in the third quarter.

How are the other markets traded?

The yield on a 10-year note for the US Treasury

TMUBMUSD10Y, + 0.29%

rose 1.6 basis points to 1.828% amid rising trade hopes after falling to a weekly low on Thursday.

West Texas Barrel Price – Intermediate Crude Oil for December Delivery

CLZ19, + 1.90%

rose 45 cents, or 0.8%, to $ 57.21, although the commodity was still on track for weekly losses. The price of an ounce of gold for delivery in December

GCZ19, -0.43%

decreased by $ 4.30, or 0.3%, to $ 1469.20, as the safe haven lost its appeal.

The value of the US dollar is 0.2% lower, according to the US dollar ICE index

DXY, -0.14% .

In Asia, overnight stocks were traded mixed, with Chinese CSI 300

000300, -0,74%

decreased by 0,7% and the Shanghai Composite Index

SHCOMP, -0.64%

decreased by 0.6%. The Japanese Nikkei 225

NIK, + 0.70% ,

meanwhile, rose 0.7%, while Hong Kong's Hang Seng Index

HSI, + 0.01%

was virtually unchanged at the session.

In Europe, the shares were traded mixed, with the Stoxx Europe 600

SXXP, + 0.40%

up 0.3%


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