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Dow Joins Nasdaq And S&P 500 At Record Intraday Highs

wallstreet oct24 04nov19 lt

Stocks have moved mostly higher in morning trading on Monday, extending the strong upward move seen in the previous session. With the continued advance, the major averages have all reached new record intraday highs.

Currently, the major averages are hovering firmly in positive territory. The Dow is up 142.65 points or 0.5 percent at 27,490.01, the Nasdaq is up 50.10 points or 0.6 percent at 8,436.50 and the S&P 500 is up 14.63 points or 0.5 percent at 3,081.54.

The continued strength on Wall Street comes as traders remain hopeful about a U.S.-China trade agreement, with Commerce Secretary Wilbur Ross expressing optimism phase one of a trade deal could be signed this month.

"We're in good shape, we're making good progress, and there's no natural reason why it couldn't be," Ross said in an interview with Bloomberg on Sunday.

Ross called the phase one agreement "particularly complicated" and acknowledged it is "always possible" the signing of the deal could "slip a little bit."

In the interview, Ross also said licenses for U.S. firms to sell components to China's Huawei Technologies would be coming "very shortly."

The comments from Ross come after a report from China's Xinhua News Agency last Friday said U.S. and Chinese trade negotiators have "reached consensus on principles."

President Donald Trump has also continued to express optimism about a trade deal, recently suggesting phase one of an agreement could be signed somewhere in the U.S. as soon as this month.

Energy stocks are extending the rally seen last Friday, benefiting from a continued increase by the price of crude oil. After spiking by more than $2 a barrel in the previous session, crude for December delivery is climbing $0.73 to $56.93 a barrel.

Reflecting the strength in the energy sector, the Philadelphia Oil Service Index and the NYSE Arca Natural Gas Index are both up by 3.6 percent. The NYSE Arca Oil Index is also up by 1.9 percent.

Significant strength has also emerged among semiconductor stocks, as reflected by the 1.7 percent gain being posted by the Philadelphia Semiconductor Index. The index has reached a new record high.

Steel, transportation, and banking stocks are also seeing notable strength, while gold and housing stocks have moved to the downside.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday, with the Japanese markets closed for a holiday. China's Shanghai Composite Index climbed by 0.6 percent, while Hong Kong's Hang Seng Index jumped by 1.7 percent.

The major European markets have also shown strong moves to the upside on the day. While the German DAX Index has surged up by 1.5 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both up by 1.1 percent.

In the bond market, treasuries are extending the pullback seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.7 basis points at 1.775 percent.

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