Tuesday’s Dow Jones Industrial Average slightly rise to a new record, lifted by strong economic data and new trade developments between the U.S. and China.
The 30-stock gage gained about 30.52 points, or 0.1 percent, on its third straight-positive day to a new record closeing high of 27,492.63. The Nasdaq Composite, weighed down by a 1.6 percent loss in Netflix shares, was little changed at 8,434.68.
However the S&P 500 dropped 0.1 percent to 3,074.67, as underperformance in the real estate and utility sectors capped broad market gains.
Dow-component Boeing rose 2 percent after the firm said that this year, in the middle of the 737 Max crises, the CEO should forgo bonuses.
After the S&P 500 and Nasdaq’s new records reached last week, solid earnings, more promising economic data and trade progress drove the Dow to an all-time high on Monday.
“At all-time highs, you always get a little vertigo and you’re getting a little bit of that today,” said Art Hogan, National Securities ‘ chief market strategist.
China is pressing President Donald Trump to lift tariffs on Chinese goods worth around $125 billion imposed as part of the “phase one” trade deal in September, reports stated.
According to the South China Morning Post, “Firmer commitments on lifting tariffs” are required for China to pay a visit to the United States.
“It’s encouraging but we are eyeing it skeptically, “said Mike Loewengart, ETrade Financials vice president of investment strategy. “We would be cautioning investors not to pin all their expectations in the coming weeks for a phase one deal.”
The two countries are in the process of choosing a new location for the signing of the deal following the cancelation of the initial meeting in mid-November for unrelated reasons. China said Friday, that it has reached a consensus with the U.S. in principle after talks last week.
Better economic results than anticipated helped to boost the Dow. A gauge for the activities of the U.S. services surpassed October expectations. The non-manufacturing ISM index stood at 54.7, compared to an estimate of 53.5 as predicted by Dow Jones polled economists.
Among 11 S&P 500 sectors, the financial sector was the best-performing group as yields continued to rise on trade-deal expectations. Bank of America expanded by 1.3% while J.P. Morgan has risen by 0.2%.
The Dow’s year – to-date gain now stands at almost 18 percent after the last month’s 3.4 percent rally. This year, the S&P 500 has risen more than 22 percent, following a 4.1 percent increase in the past month.
The corporate earnings season was largely better than expected, as FactSet data shows that 75 percent of the S&P 500 companies that reported topped analyst expectations. Adobe rose 5 percent on Tuesday after the company issued better-than-expected guidance for the 2020 fiscal year.
According to a Commerce Department report Tuesday. The U.S. trade deficit with its global partners contracted to $52.5 billion in September as the U.S. and China were working towards a tariff truce.
Walgreens Boots Alliance’s shares rose 2.6 percent from the company’s reports exploring a private-going deal.


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