US close: Markets hit fresh records as investors celebrate trade deal
Wall Street three main indices all finished at record highs on Monday, as Washington and Beijing's "phase one" trade deal remained the focus of most traders.
The Dow Jones Industrial Average closed up 0.36% at 28,235.89, the S&P 500 added 0.71% to 3,191.45, and the Nasdaq Composite was 0.91% firmer at 8,814.23.
At the open, the Dow was 196.65 points higher, after the benchmark saw out the previous week in the green as a result of Washington and Beijing reaching a deal to avoid fresh punitive tariffs planned by the Donald Trump administration.
The President said Beijing had agreed to "massive" purchases of US agricultural and other goods but did not give a specific number - initially leaving market participants cautious moving into the new week.
However, US Trade Representative Robert Lighthizer assured investors that the deal was "totally done".
Also in focus, Chinese November industrial production and retail sales came in better than expected over the weekend, indicating economic growth was stabilising in China.
“With some trade uncertainty removed last week, investors should start feeling more confident that China will be able to keep their economy growing at 6.0% or better in 2020,” said Oanda's Edward Maya.
On the data front, a closely-followed gauge of factory sector conditions in the jurisdiction of the Federal Reserve Bank of New York improved slightly in December.
The Empire State index, which covers mainly the state of New York and 12 northern counties in New Jersey, rose from a reading of 2.9 for November to 3.5 in December.
However, that was worse than the consensus forecast for a print of 5.0.
Elsewhere, business activity in the US manufacturing sector was projected to expand at a moderate pace in December, according to data from IHS Markit on Monday.
The manufacturing PMI ticked down to 52.5 in December's preliminary reading from 52.6 in November, below the market expectation of 52.5.
At the same time, the services PMI improved to 52.2 from 51.6 to surpass analysts' estimates of 52.
Lastly, the National Association of Home Builders' housing market index for December was boosted by a stronger economy and a severe housing shortage this month.
The report revealed the nation's homebuilders felt better than they had in two decades, with builder confidence in the newly built, single-family home market jumping five points in December to 76, the highest reading since June 1999.
In corporate news, embattled aircraft manufacturer Boeing was down 4.29% amid reports that the company was preparing to suspend production of its 737 MAX entirely, as the model remains grounded worldwide following two fatal crashes.
Chipmaker Intel slipped 0.16% after the company revealed the acquisition of artificial intelligence specialist Habana Labs in a $2bn deal.
Energy utility PG&E tumbled 13.7%, after California state governor Gavin Newsom said the company’s plan to reimburse wildfire victims and get out of bankruptcy did not go far enough.
A number of the fires plaguing the West Coast state in recent years have been blamed on poorly-maintained transmission equipment owned by PG&E.
On the upside, ride hailing app operator Uber Technologies was ahead 5.48% following reports that it was discussing the sale of its food delivery operation in India to a local competitor.
A number of health insurance stocks were in the green, following a report from PoliticoPro that US lawmakers had reached a deal to remove taxes from employer-provided health plans, medical devices and health insurance fees.
Anthem was up 2.7%, Cigna added 2.77%, Humana rose 3.61%, and UnitedHealth Group was 2.29% firmer by the end of trading.
Dow Jones - Risers
Unitedhealth Group Inc. (UNH) $292.03 2.29%
Pfizer Inc. (PFE) $39.14 2.11%
Apple Inc. (AAPL) $279.86 1.71%
Cisco Systems Inc. (CSCO) $45.98 1.50%
Walt Disney Co. (DIS) $148.46 1.42%
Goldman Sachs Group Inc. (GS) $228.04 1.35%
Chevron Corp. (CVX) $119.36 1.19%
3M Co. (MMM) $170.75 1.16%
Exxon Mobil Corp. (XOM) $70.00 1.11%
Nike Inc. (NKE) $98.81 1.06%
Dow Jones - Fallers
Boeing Co. (BA) $327.00 -4.29%
American Express Co. (AXP) $123.68 -0.83%
Intel Corp. (INTC) $57.70 -0.16%
Walgreens Boots Alliance, Inc. (WBA) $57.80 -0.14%
Caterpillar Inc. (CAT) $145.36 -0.12%
International Business Machines Corporation (CDI) (IBM) $134.13 -0.06%
Dowdupont Inc. (DWDP) $30.52 0.00%
Coca-Cola Co. (KO) $54.42 0.00%
Procter & Gamble Co. (PG) $125.56 0.07%
Merck & Co. Inc. (MRK) $89.29 0.11%
S&P 500 - Risers
Cabot Oil & Gas Corp. (COG) $16.89 4.91%
Under Armour Inc. Class A (UAA) $20.43 4.61%
Mosaic Company (MOS) $19.48 4.56%
Under Armour, Inc. (UA) $18.59 4.56%
Western Digital Corp. (WDC) $56.50 4.05%
Centene Corp. (CNC) $60.02 4.00%
CF Industries Holdings Inc. (CF) $46.88 3.85%
Hess Corp. (HES) $64.60 3.66%
Marathon Petroleum Corporation (MPC) $60.75 3.65%
Humana Inc. (HUM) $365.88 3.61%
S&P 500 - Fallers
International Flavors & Fragrances Inc. (IFF) $120.00 -10.43%
Boeing Co. (BA) $327.00 -4.29%
Abiomed Inc. (ABMD) $176.31 -3.05%
Mattel Inc. (MAT) $12.96 -2.85%
Keysight Technologies Inc. (KEYS) $105.17 -2.45%
Universal Health Services Inc. (UHS) $141.67 -1.85%
Tapestry Inc. (TPR) $25.48 -1.77%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $249.10 -1.74%
Nektar Therapeutics (NKTR) $20.92 -1.65%
Hasbro Inc (HAS) $102.26 -1.60%
Nasdaq 100 - Risers
Tesla Inc (TSLA) $381.50 6.45%
Biomarin Pharmaceutical Inc. (BMRN) $83.50 4.15%
Western Digital Corp. (WDC) $56.50 4.05%
Baidu Inc. (BIDU) $123.19 3.40%
Micron Technology Inc. (MU) $52.94 3.40%
Autodesk Inc. (ADSK) $184.37 2.76%
Amgen Inc. (AMGN) $243.20 2.73%
Mercadolibre Inc. (MELI) $582.18 2.56%
Broadcom Inc. (AVGO) $323.13 2.44%
DENTSPLY Sirona Inc. (XRAY) $57.52 2.02%
Nasdaq 100 - Fallers
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $249.10 -1.74%
Hasbro Inc (HAS) $102.26 -1.60%
Charter Communications Inc. (CHTR) $470.23 -1.06%
Ross Stores Inc. (ROST) $114.39 -0.95%
Qurate Retail Inc. (QRTEA) $8.10 -0.86%
Liberty Global plc Series C (LBTYK) $20.92 -0.62%
Mylan Inc. (MYL) $19.03 -0.57%
Cintas Corp. (CTAS) $260.73 -0.41%
eBay Inc. (EBAY) $35.40 -0.23%
Fiserv Inc. (FISV) $116.51 -0.21%