Stocks – Market Rises Modestly on Trade Hopes (Again)

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© Reuters. © Reuters. – There was, for public consumption, talk about how U.S.-China trade talks were progressing, and that was good enough for the stock market to move higher and break a multi-day losing streak Friday.

The was up 0.2%, with the up 0.4%. The rising 0.16%. The , dominated by big tech, added 0.08%. The S&P 500 and Dow broke three-day losing streaks. The Nasdaq indexes moved up after two days of declines.

The trade talk was just that, with Chinese President Xi Jinping saying the two sides were talking but vowing to walk away if he believes China’s sovereignty is threatened. President Donald Trump said talks were progressing, but he believes the United States should come out ahead.

What does seem more likely is a deal isn’t near and that more tariffs will be imposed on Chinese imports starting Dec. 15, although the stock market is clearly hoping for a phase one deal.

For the week, the , and Nasdaq saw declines. The S&P 500’s was the first weekly loss after six weeks of gains. The Dow’s decline was first after rising for four weeks. The Nasdaq’s loss came after rising for seven straight weeks.

In that time, the stock market hit record highs, but, in the last week, gave off signs it might be overbought. Relative strength indexes for the Dow, S&P 500 and Nasdaq surged above 70 on Nov. 15, a warning of frothiness. Above 80 makes a big pullback inevitable.

As it is, the averages are less than 1% below their record highs, which suggests there’s not a lot of worry in the market yet.

The market was led by gains in the S&P 500’s financial, consumer discretionary, health and industrial sectors.

Boeing (NYSE:) was among the top performers, up more than 1.3% as the company unveiled its 737 Max 10 jet, which can seat 230. The plane remains grounded, but many investors believe it will be flying again early next year. The stock contributed 33 points to the Dow’s 109-point gain.

The Dow’s percentage leader was Pfizer (NYSE:), followed by 3M (NYSE:), Boeing, Nike (NYSE:), Johnson & Johnson (NYSE:) and Walt Disney (NYSE:).

Banks were especially strong with US Bancorp (NYSE:) hitting a 52-week high. Airlines were gainers as oil prices fell back.

Laggards included staples, technology and real estate stocks. Tech loses included Google parent Alphabet Inc Class A (NASDAQ:), Apple (NASDAQ:), Netflix (NASDAQ:), Intel (NASDAQ:) and Qualcomm (NASDAQ:).

moved lower as worries built about global oversupplies. Interest rates and were flat.

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