The Dow Jones Industrial Average ended at another record high Friday after White House economic adviser Larry Kudlow said China and the U.S. were getting close to reaching a trade deal.
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The 30-stock average closed 222 points higher at 28,004. Friday also marked the first time the Dow reached 28,000. The S&P 500 and Nasdaq also hit new all-time highs, gaining 0.8% and 0.7%, respectively.
Trade-sensitive names such as Caterpillar, Boeing, Apple and Micron Technology all rose at least 0.9%. Gold, meanwhile, fell 0.3% to $1,468.50 per ounce as haven assets pulled back broadly.
Health care stocks also rose nearly 2% after the Trump administration released a plan that would force hospitals and insurance companies to disclosed the rates they negotiated. UnitedHealth, Humana and Danaher were all up more than 4%.
“There’s quite a bit of optimism that we’re going to get a deal,” said Gibson Smith, the founder of Smith Capital Investors. “That would take away some of the uncertainty off the table. Unfortunately . . . we’ve had so many rounds of being told a deal is imminent and then it’s not. So, it’s still a very headline-driven market.”
The S&P 500 was up 0.5% for the week and posted its sixth straight weekly advance, the index’s longest winning streak since 2017, when it climbed for eight straight weeks. The Dow capped its fourth week of consecutive gains, rising 0.8%. The Nasdaq, meanwhile, has risen 0.6% for the week, posting a seven-week winning streak.
Kudlow, the National Economic Council director, said Thursday that a deal between the two nations was approaching, highlighting constructive discussions with Beijing. His comments came after multiple reports suggested both sides were at loggerheads over the terms of a phase one trade agreement.
“The Kudlow comments are all that really matters to the macro narrative for Friday,” said Adam Crisafulli, the founder of Vital Knowledge, in a note. “Looking forward for the SPX, it seems like the index will struggle to come for sale until there is a formal decision on ‘phase one’ – any signs of doubt are being dismissed while words of encouragement can still provide upside pressure.”
The major averages closed little changed on Thursday as recent jitters around U.S.-China trade tempered the excitement around the market’s record-setting rally. The S&P 500 and Dow are up 3.4% and 2.8%, respectively, over the past month through Thursday’s close. The Nasdaq Composite has gained 4.1% in that time.
Jeff Zipper, managing director of investments at U.S. Bank Private Wealth Management, noted investors have taken comfort in the fact that “thing’s aren’t as bad as originally expected.” He added, however, that the market is “a bit overbought” at current levels.
Investors also digested mixed data on the U.S. consumer. Retail sales grew by 0.3% in October, topping an estimate of 0.2%. However, the data also showed big-ticket purchases dropped last month.
Federal Reserve Chairman Jerome Powell said Thursday that he does not see signs of bubbles brewing amid concerns over higher corporate and government debt.
CNBC’s Silvia Amaro and Michael Bloom contributed to this report.
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November 16, 2019 at 04:10AM
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Dow tops 28,000 for first time, capping 4-week win streak - msnNOW
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