US Market ends at new record

The US stock market finished session modest higher on Wednesday, 13 November 2019, on the back of Federal Reserve Chair Jerome Powell testimony that U.S. central bankers see a sustained expansion ahead for the country's economy. Also, Factors supporting the rally include the resumption of short dated debt buying to add liquidity to money markets and a surge in government spending. However, market gains were capped amid lingering uncertainty about a potential U.S.-China trade deal. At closing bell, the Dow Jones Industrial Average advanced 92.10 points, or 0.33%, to 27,783.59, meanwhile the S&P 500 index rose 2.20 points, or 0.07%, to 3,094.04. The Nasdaq Composite fell 3.99 points, or 0.05%, to 8,482.10.

Federal Reserve chairman Jerome Powell testified before the Joint Economic Committee of Congress on Wednesday. Powell said in prepared remarks before the Congressional Joint Economic Committee that the current stance of monetary policy is likely to remain appropriate as long as incoming information about the economy remains broadly consistent with the Fed's outlook.

However, market gains were capped amid uncertainty about a potential deal between the world's two biggest economies after President Donald Trump failed to offer many details about the trade talks in a speech on Tuesday.

President Trump said China had agreed to buy up to $50 billion in U.S. soybeans, pork and other agricultural products annually, but China is reluctant to put a numerical commitment in the text of a potential agreement. The dispute over farm purchases is one of several issues that have delayed completion of the limited trade accord announced by Trump and Chinese Vice Premier Liu He on Oct. 11. Both sides are also at odds over when and by how much the U.S. would agree to lift tariffs on Chinese imports. Chinese officials have also resisted U.S. demands for a strong enforcement mechanism for the deal and curbs on the forced transfer of technology for companies seeking to do business in China.

In remarks at the Economic Club of New York, Trump claimed the Chinese are "dying to make a deal" and an agreement is "close," although investors had been hoping for more substantive comments. The president said a significant phase one trade deal with China "could happen soon" but stressed that he would only accept an agreement that is good for U.S. companies and workers.

Impeachment inquiries on U.S. President Donald Trump as well as geopolitical tensions such as the escalating anti-government protests in Hong Kong are factors that investors are keeping a close eye on.

Walt Disney Co shares jumped 5.9% after the media company said its new streaming service, Disney+, reached 10 million sign-ups since launching the previous day.

In U.S. economic news, the Labor Department released a report showing consumer price index climbed by 0.4% in October after coming in unchanged in September. Excluding food and energy prices, core consumer prices edged up by 0.2% in October after a 0.1% uptick in September.

The U.S. federal government's budget deficit in October rose 34% from a year earlier to $134.5 billion, putting the U.S. on course to top the $1 trillion mark in fiscal 2020 for the first time in eight years, or nearly 5% of gross domestic product.

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