On more positive news of progress in a trade deal with China the Dow shot up a hundred points right out the gate and during the day the momentum continued pushing the index up another 130 points such that by about 2 pm, it was up nearly 300 points. Then came news that there was dissension within the White House about the deal and before close it came down to close up 182.  Today’s expert states that because of the combo of all-time highs and trade uncertainty, it’s easy for traders to sell and take profits at the slightest sign of negative developments.  Nevertheless, some sort of trade deal is expected to go into effect in time to scrap the tariffs scheduled for mid-December. Q3 still goes very well which, while earnings are still down from this time last year (which was widely expected from the beginning) but down far less than forecast.  Volume was 7.9 billion, considerably above the 4-week average of 6.8 billion. 

Thu  NOVEMBER 7, 2019 / 4:56 pm 

Dow, S&P 500 hit record closes as investors digest trade news

Caroline Valetkevitch

DJ:  27,492.56  -0.07         NAS:  8,410.63  -24.05         S&P:  3,076.78  +2.16       11/6

DJ:  27,674.80  +182.24    NAS:  8,434.52  +23.89        S&P:  3,085.18  +8.40       11/7

NEW YORK (Reuters) - The Dow and S&P 500 notched record closing highs on Thursday as the latest signs of progress in U.S.-China trade relations relieved investors, but a report raising fresh worries about the outlook for a deal limited the day’s gains.  China said it had agreed with the United States to remove tariffs in phases, while state-owned Xinhua News Agency  said Beijing was also considering removing restrictions on poultry imports.  But indexes pared gains in afternoon trading after a Reuters report, citing sources, said that the White House’s plan to roll back China tariffs faces internal opposition and that no final decision has been made yet.

An interim U.S.-China trade deal is expected to include a U.S. pledge to scrap tariffs scheduled for Dec. 15.   “Any kind of uncertainty there, with the market at all-time highs, and it’s easy for traders and institutions to press the sell button and take some money off the table,” said Alan Lancz, president, Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio.

The latest batch of earnings offered some upbeat news.  The S&P 500 technology index .SPLRCT ended up 0.7%, with shares of Qualcomm Inc (QCOM.O) up 6.3% after it forecast current-quarter profit above analysts’ estimates.  Together with Qualcomm, other chipmakers, which have a sizeable exposure to China, also rose, propping the Philadelphia Semiconductor index .SOX up 0.7%.  The trade-sensitive industrials sector .SPLRCI finished up 0.2%.

The Dow Jones Industrial Average .DJI rose 182.24 points, or 0.66%, to 27,674.8, the S&P 500 .SPX gained 8.4 points, or 0.27%, to 3,085.18 and the Nasdaq Composite .IXIC added 23.89 points, or 0.28%, to 8,434.52.  The day’s gains resumed the recent record run for stocks, which have been bolstered, along with trade deal hopes, by some upbeat earnings. 

“Corporate earnings, while down year over year, are better than many had expected, and that’s a plus,” said Oliver Pursche, chief market strategist of Bruderman Asset Management in New York.  Also on Thursday, Ralph Lauren Corp (RL.N) surged 14.7% after it topped second-quarter profit expectations, helped by a tighter control on expenses and strong demand for its Polo shirts and tweed jackets in China and Europe.  On the down side, Expedia Group Inc (EXPE.O) plunged 27.4% as the online travel booking company missed quarterly profit estimates.

Declining issues outnumbered advancing ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favored advancers.  The S&P 500 posted 54 new 52-week highs and five new lows; the Nasdaq Composite recorded 118 new highs and 85 new lows.

Volume on U.S. exchanges was 7.92 billion shares, compared with the 6.83 billion-share average for the full session over the last 20 trading days.