US Market ends at fresh all-time highs

The US stock market finished session at fresh all-time highs on Monday, 18 November 2019, as risk appetite buying supported by rising optimism that a limited, phase-one trade deal will soon be struck. Seven of the 11 major S&P 500 sectors were higher, with defensives such as utilities, real estate and consumer staples, also known as bond proxies due to their high dividend yields, being notable gainers, while energy sector was the were notable loser as oil prices fell. At closing bell, the Dow Jones Industrial Average advanced 31.33 points, or 0.11%, to 28,036.22, while the S&P 500 index rose 1.57 points, or 0.05%, to 3,122.03. The Nasdaq Composite grew 9.11 points, or 0.11%, to 8,549.94.

Investors were optimistic about the progress of US- China trade talks after an extension for U.S. companies to do business with Huawei and report that the two sides had "constructive talks" on trade on Saturday.

 

Chinese Vice Premier Liu He, the country's top trade negotiator, held a phone conversation with U.S. Trade Rep. Robert Lighthizer and Treasury Secretary Steven Mnuchin on Saturday, describing the discussions as constructive. That came after White House economic advisor Larry Kudlow said late last week the two economic powerhouses were getting close to a deal.

The Trump administration on Monday issued a 90-day extension of a license allowing U.S. companies to continue doing business with Chinese telecom giant Huawei Technologies Co.

Beauty products giant Coty shares jumped after announcing a deal to pay US$600 million for a majority stake in Kylie Jenner's cosmetics and Skincare Company.

HP Inc shares dropped as it rejected a US$33 billion bid from Xerox, saying that it "significantly undervalues" the company but signalling that it was open to a potential deal down the road. Xerox shares closed higher.

ECONOMIC NEWS: US Homebuilder Confidence Edges Lower In November -- The National Association of Home Builders released a report on Monday showing homebuilder confidence edged slightly lower in the month of November. The report said the NAHB/Wells Fargo Housing Market Index slipped to 70 in November after climbing to 71 in October. The modest decrease came after the housing market index rose for four straight months to reach its highest level since hitting a matching reading in February of 2018. The slight pullback by the headline index came as the index gauging current sales conditions fell to 76 in November from 78 in October and the measure charting traffic of prospective buyers dipped to 53 from 54.

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