Dow reclaims 29,000 with US-China phase one trade deal done

Stocks fluctuated amid the historic US-China trade deal

U.S. stocks hit record highs, before pulling back, after the signing of the historic phase one trade deal between the U.S. and China.

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The Dow Jones Industrial Average reclaimed 29,000, a key psychological level for investors, while the S&P 500 also rallied with both hitting fresh records. The Nasdaq Composite also registered modest gains.

US-CHINA PHASE ONE TRADE DEAL: WHAT BEIJING HAS AGREED TO BUY

TickerSecurityLastChangeChange %
SP500S&P 5002955.45+6.94+0.24%
I:DJIDOW JONES AVERAGES24465.16-8.96-0.04%
I:COMPNASDAQ COMPOSITE INDEX9324.587279+39.71+0.43%

Bank earnings continued to roll out with Goldman Sachs reporting a 26 percent drop in fourth-quarter profit amid weakness in its investment banking unit and higher operating costs. Meanwhile, Bank of America’s profit outpaced expectations as bond-trading revenue soared 25 percent year over year to $1.8 billion.

TickerSecurityLastChangeChange %
GSGOLDMAN SACHS GROUP INC.179.93-0.17-0.09%
BACBANK OF AMERICA CORP.22.66-0.24-1.05%

Investment firm BlackRock beat on both the top and bottom lines as its assets under management surged past $7 trillion.

Elsewhere, on the earnings front, health care provider UnitedHealth reported a better-than-expected profit but missed on revenue.

TickerSecurityLastChangeChange %
BLKBLACKROCK INC.513.30+4.79+0.94%
UNHUNITEDHEALTH GROUP INCORPORATED289.94+3.03+1.06%

Target shares were under pressure after the big-box retailer reported holiday sales that fell short of Wall Street estimates and warned that fourth-quarter comparable sales would miss its forecast.

Amazon on Tuesday lifted its ban on third-party sellers using FedEx Ground for shipments, sending shares of the logistics giant higher.

TickerSecurityLastChangeChange %
TGTTARGET CORP.117.49-1.19-1.00%
AMZNAMAZON.COM INC.2,436.88-9.86-0.40%
FDXFEDEX CORPORATION117.00+1.23+1.06%

Economic data out Wednesday morning showed producer prices rose 0.1 percent year over year in December, according to the Bureau of Labor Statistics. That was below the 0.2 percent gain that economists surveyed by Refinitiv were expecting.

Looking at commodities, gold was up 0.8 percent near $1,557 an ounce and West Texas Intermediate crude oil was down 0.5 percent at $57.99 a barrel after weekly data showed an unexpected inventory build.

U.S. Treasurys gained, lowering the yield on the 10-year note by 2.6 basis points to 1.792 percent.

In Europe, Britain’s FTSE was up 0.3 percent while France’s CAC and Germany’s DAX were weaker by 0.1 percent and 0.2 percent, respectively.

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Markets were broadly lower across Asia with China’s Shanghai Composite and Japan’s Nikkei both down 0.5 percent and Hong Kong’s Hang Seng off 0.4 percent.