US STOCKS-Wall St jumps but ends high after partial trade news
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* Trump announces partial trade agreement phase 1
* Indexes up: Dow 1.2%, S&P 500 1.1%, Nasdaq 1[ads1] , 3% (Updates to close)
By Caroline Valetkevitch
NEW YORK, October 11 (Reuters) – US stocks ended more than 1% higher on Friday, but well outside today's high after the announcement of a partial trade agreement between the United States and China.
The indices cut the gains late in the session when the deal was announced amid concerns about potential deal failures, strategists said.
President Donald Trump said that the US and China had reached a significant Phase 1 trade agreement, and reached an agreement on intellectual property, financial services and major agricultural procurement.
Trump, who spoke to reporters after talks with Chinese Deputy Prime Minister Liu He, also said the two countries are close to ending their trade war.
The market had risen sharply earlier in the day due to optimism for a deal.
"Anything less than a comprehensive deal is likely to see a certain degree of the market sell out," said Michael James, chief executive of stock trading at Wedbush Securities in Los Angeles.
"The timing had a lot to do with the volatility. It was 15 minutes to go on trading day on a Friday … after the Dow had risen 700 points over the last two days," he said.
Top-level discussions between the two countries ended their second day on Friday.
Cyclical was among today's best performing groups, with the S&P industry index up around 2% ahead of the third quarter revenue season, which is set to begin next week.
The Dow Jones industrial average rose 319.92 points, or 1.21%, to 26,816.59, the S&P 500 gained 32.14 points, or 1.09%, to 2,970.27 and the Nasdaq Composite added 106, 27 points, or 1.34%, to 8,057.04.
Indices also won for the week, with Dow and Nasdaq up 0.9% each and the S&P 500 up 0.6%.
Analysts expect S&P 500 earnings to have fallen 3.2% year-on-year in the third quarter, which would mark the first decline since 2016, according to IBES data from Refinitive.
Games for another Federal Reserve rate cut fell after data showed years are in consumer sentiment for the month of October.
Apple shares rose as Wedbush raised its price target, citing confidence in the company's new video streaming service.
The industrial index was boosted by an increase in shares in Fastenal Co after the industrial distributor beat quarterly expectations.
Forward issues were above the numbers falling on the NYSE with a 3.14-to-1 ratio; on the Nasdaq, a 3.08-to-1 ratio favored forwarders.
The S&P 500 posted 27 new 52-week highlights and no new lows; Nasdaq Composite registered 44 new highs and 60 new lows.
The volume of US stock exchanges was 7.55 billion shares, compared with the approximately 7 billion average for the entire session over the past 20 trading days. (Additional reporting by April Joyner and Sinead Carew in New York and Shreyashi Sanyal in Bengaluru; Editing by Louise Heavens and Bill Berkrot)
