Stocks push past latest trade-war confusion to more records

S&P 500 posts fifth week of gains as Wall St. hits records

S&P 500 posts fifth week of gains as Wall St. hits records

The Dow Jones Industrial Average rose 6.44 points, or 0.02%, to 27,681.24, the S&P 500 gained 7.9 points, or 0.26%, to 3,093.08 and the Nasdaq Composite added 40.80 points, or 0.48%, to 8,475.31. -China trade relations. Given the lack of new economic information on Thursday, the move in the bond market may have been a sign that investors have officially switched off their recession alarm and are now looking to the potential for stronger growth. "It just feels like everything is moving in the right direction".

The stock market capped another week of healthy gains on Friday, but it ended on more of a befuddled note than a bang as confusion about the U.S.

The higher yields dampened buying interest in the rate-sensitive utilities (-1.4%) and real estate (-1.1%) sectors, while consumer discretionary (-0.6%) and consumer staples (-0.4%) were the other two sectors that finished lower. This raised flags about a potential recession because history has shown that this rare market phenomenon is a pretty reliable warning signal, according to economists.

Gold fell $26.00 to $1,464.20 per ounce, silver fell 59 cents to $16.97 per ounce and copper rose 6 cents to $2.72 per pound.

Not only are yields on the rise, so is the gap between short- and long-term Treasurys.

That leaves the US trade war as the wildcard for the global economy, and markets are trading on every whiff of movement about it as a result.

The 10-year Treasury yield dropped below the two-year yield in late August and early September. It's a relatively rare thing, and it's often correctly predicted recessions in the past, though it doesn't have a ideal record.

Increasing optimism on the trade front and mostly better-than-expected earnings have driven the recent record run in stocks. -China trade deal have flipped the yield curve back to normal.

Confidence may have gotten so high recently that stock prices have become too expensive, said George Young, portfolio manager at Villere & Co.

He sees so few stocks attractively priced that he now has 15% of his clients' money at mutual funds and separately managed account sitting in cash. In June, when worries about the economy and trade war were higher, Young had only 5 percent in cash given the many bargains available.

"I wouldn't say I'm negative on the market", Young said, "but when stocks get ahead of themselves, it's incumbent upon me to balance against the long term".

ROARING MOUSE: Walt Disney rose 4.4% after handily beating Wall Street's fiscal fourth-quarter profit forecasts on surging revenue because of films including "The Lion King" and "Toy Story 4". The company also said it received a positive response from a test of its planned streaming service, Disney Plus. It also announced the resignation of CEO Art Peck. Gap also slashed its full-year earnings forecast.

Benchmark crude oil rose 80 cents to settle at $57.15 a barrel. Brent crude oil, the global standard, rose 22 cents to $62.51 a barrel.

The Nasdaq hit a record of 8,434.68 on Tuesday, its second record this week. Wholesale gasoline rose 1 cent to $1.64 per gallon.

Banks also slipped. Principal Financial fell 1.7%. Heating oil was unchanged at $1.92 per gallon.

The dollar fell to 109.15 Japanese yen from 109.31 yen on Thursday.

AP Business Writer Damian J. Troise contributed.