The main US stock indexes rose significantly, as the announcement of an agreement between the US and China on the first phase of the trade transaction led to de-escalation of tension between the two largest economies and the removal of one of the obstacles to global economic growth.

US Trade Representative Robert Lighthizer said on Sunday that the usual “clean-ups” would be added to the text of the agreement, but “it’s completely ready,” adding that the parties have yet to determine the date and place of official signing. He also noted that the deal would almost double US exports to China in the next two years.

Strong optimism was also fueled by strong economic data from China. Industrial production in China in November grew by 6.2% year on year, exceeding expectations (+ 5%). Retail sales in China also rose 8% last month, while economists forecast an increase of 7.6%.

Market participants also evaluated data from IHS Markit, which showed that US private sector business growth accelerated further in December. According to the report, the composite index of business activity in the US in December rose to 52.2 from 52.0 in November, which indicates the sharpest growth in private sector production since July. According to preliminary data, the index of purchasing managers of the manufacturing sector from IHS Markit practically did not change in December and amounted to 52.5 after 52.6 in the previous month, while the same indicator for the service sector rose to a five-month high of 52.2.

At the same time, a report published by the National Association of Home Builders (NAHB) showed that American homebuilders' confidence jumped to a twenty-year high in December. According to the report, the NAHB / Wells Fargo Housing Market Index rose in December to 76 from a revised 71 in November. Economists had expected the index to remain unchanged from the 70 that were originally reported the previous month. After an unexpected jump, the index reached its highest level since June 1999 (77 points).

Most DOW components completed trading in positive territory (26 out of 30). The biggest gainers were UnitedHealth Group Inc. (UNH; + 2.29%). Outsider were the shares of The Boeing Co. (BA; -4.21%).

Almost all S&P sectors recorded an increase. The conglomerate sector grew the most (+ 1.3%). Only the real estate sector (-0.1%) and the industrial goods sector (-0.2%) decreased

At the time of closing:

Dow 28,237.34 +101.96 + 0.36%

S&P 500 3,191.88 + 23.08 + 0.73%

Nasdaq 100 8,816.18 +81.31 + 0.93%

U.S. stock-index futures rose on Monday as investors continued to cheer the announcement of the Phase One trade deal and react positively to some upbeat Chinese data.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Goldman Sachs (GS) upgraded to Buy from Neutral at Citigroup; target raised to $255

Micron (MU) upgraded to Positive from Neutral at Susquehanna; target raised to $85

UnitedHealth (UNH) added to Conviction Buy List at Goldman