Major US stocks rose significantly after US President Donald Trump announced that a trade agreement with China could be concluded earlier than expected. Investors also analyzed the transcript of a conversation between the US president and the president of Ukraine.

Donald Trump told reporters that a trade agreement with China could be concluded “sooner than you might think.” The two largest economies in the world have been in trade negotiations since last year. Disagreements between China and the United States have caused unrest in global financial markets, as investors worry about the negative impact of the trade war on the global economy.

However, further growth was restrained by concerns about Trump's political future. The published version of the transcript of his conversation with Ukrainian President Vladimir Zelensky showed that the head of the White House urged the latter to “study” the situation with former US vice president Joe Biden and his son Hunter. The transcript was made public after US House Democrat Nancy Palosi announced Tuesday that a formal impeachment process had been launched against the US president because of a telephone conversation with the Ukrainian president, during which he allegedly pressured his Ukrainian counterpart and demanded an investigation into Burisma, led by the son of Joe Biden, his rival in the presidential election.

The market was also supported by the August data on sales of new buildings in the United States and Nike (NKE) company reports that exceeded expectations.

A report by the Ministry of Commerce showed that new home sales rose 7.1% in August, to a seasonally adjusted annual rate of 713,000 units, helped by a surge in activity in the South and West. July sales were revised to 666,000 units from the previously announced 635,000 units. Economists predicted that sales of new homes, which account for about 11.5% of housing sales, would increase to 660,000 units in August.

Nike (NKE) shares jumped 4.24% after the company reported quarterly earnings of $ 0.86 per share, $ 0.15 higher than analysts' average forecast. The company's revenue also exceeded the average Wall Street forecast. The results of the manufacturer of sports shoes and clothing were supported by a significant jump in online sales, among other factors.

Most DOW components completed trading in positive territory (21 out of 30). The biggest gainers were NIKE Inc. (NKE; + 4.24%). Outsider were shares of UnitedHealth Group Inc. (UNH; -1.13%).

Almost all S&P sectors recorded an increase. The technological sector has grown the most (+ 1.2%). The largest decline was shown by the health sector (-0.5%).

At the time of closing:

Dow 26,970.71 +162.94 +0.61%

S&P 500 2,984.87 +18.27 +0.62%

Nasdaq 100 8,077.38 +83.76 +1.05%

U.S. stock-index futures traded flat on Wednesday amid araised political uncertainty after impeachment inquiry into US President Donald Trump. However, a surge in Nike (NKE; +5.2%) shares helped cap the losses.

Global Stocks:

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Home Depot (HD) target raised to $220 from $210 at Telsey Advisory Group

NIKE (NKE) reported Q1 FY 2020 earnings of $0.86 per share (versus $0.67 in Q1 FY 2019), beating analysts’ consensus estimate of $0.71.

The company’s quarterly revenues amounted to $10.660 bln (+7.2% y/y), beating analysts’ consensus estimate of $10.433 bln.

NKE rose to $92.08 (+5.62%) in pre-market trading.