"This was telegraphed well enough that the market is kind of looking through it and toward the next phase and what that means," said
The agreement helped propel the Dow Jones Industrial Average closed above 29,000 points for the first time and the S&P 500 index hit its second record high in three days Wednesday.
The deal done, traders will likely shift their attention elsewhere for now. But skepticism over the long-term prospects for resolving key issues remains, analysts said.
“Despite some negative spin-doctoring this morning, it's hard to argue that the deal marks a significant step in ending the frictions that have cast a dark cloud over global economic growth,"
The S&P 500 index rose 0.2% to 3,289.29. The index also climbed to an all-time high on Monday. The Dow gained 0.3% to 29,030.22. The Nasdaq composite added 0.1%, to 9,258.70. Smaller-company stocks fared better than the rest of the market. The Russell 2000 picked up 0.4%, to 1,682.40.
Health care stocks accounted for much of the market's gains. Utilities and makers of household goods also rose. Those gains outweighed losses in financial stocks, companies that rely on consumer spending and the energy sector.
Bond prices rose. The yield on the 10-year
While limited in its scope, investors have welcomed the
With the "Phase 1" agreement now a done deal, investors have more reason to focus on the rollout of corporate earnings reports over the next few weeks. Earnings have been flat to down for the last three quarters, and if the fourth quarter meets expectations, it should be around the same.
However, analysts are projecting 2020 corporate earnings growth to jump around 9.5%, which is why traders will be listening this earnings reporting season for any clues management teams give about their business prospects in coming months.
"We're expecting a reacceleration in the back end of the year, so any (company) guidance that brings any type of skepticism to that could threaten the recent rally we've had and the gains that we've accrued in the past few months," Buchanan said.
Homebuilders marched broadly higher on news that
Benchmark crude oil recouped overnight losses, gaining
The dollar rose to
AP Business writers