Seeking Alpha

Dow rises to record high as relief rally continues

|By: , SA News Editor

The three major market indexes push out to new record highs in early trade, as easing Middle East tensions and China's confirmation that Vice Premier Liu He will visit the U.S. next week to sign the phase one trade deal support upbeat investor sentiment; S&P 500 and Dow both +0.4%, Nasdaq +0.7%.

"We do not want to be dismissive of the political ramification of recent events, but we doubt that they will have a long-lasting effect on the trajectory of markets unless matters develop well beyond where they stand today," says Michael Shaoul, chairman and CEO of Marketfield Asset Management.

European bourses trade in the green, with Germany's DAX +1.2%, U.K.'s FTSE +0.5% and France's CAC +0.3%; in Asia, Japan's Nikkei +2.3% and China's Shanghai Composite +0.9%.

In the U.S., an early look at the S&P sectors shows information technology (+1.1%) in the early lead, helped by continued strength in Apple (+1.6%), while the energy (-0.4%) and real estate (-0.1%) sectors open lower.

U.S. Treasury prices tick lower, pushing both the two-year and 10-year yields 2 bps higher to 1.58% and 1.89%, respectively; U.S. Dollar Index +0.2% to 97.44.

WTI February crude oil -0.3% to $59.44/bbl.