The main US stock indices rose moderately, as optimism regarding the trade deal between the US and China remained, while recent macroeconomic data indicated the stability of the US economy.

Trump said Tuesday that the United States and China are close to closing the first phase of the deal. Trump's positive comments came after a phone conversation between US and Chinese officials. The negotiators agreed to continue work on the remaining controversial issues.

The Commerce Department said US economic growth accelerated somewhat in the third quarter, rather than slowing, as originally reported, amid higher stockpiling rates and a less dramatic decline in business investment. According to a second estimate, US gross domestic product (GDP) increased by 2.1% year on year. This is compared with the rate of 1.9%, estimated last month. Between April and June, economic growth was 2.0%. Economists forecast that GDP growth in the third quarter will remain unchanged at 1.9%.

Another report from the Ministry of Commerce showed that durable goods orders rose 0.6% in October after falling 1.4% in the previous month. Economists had forecast a decline of 0.8%. At the same time, orders for major capital goods produced in the USA increased by 1.2%, and this is the largest increase since January.

In a separate report, the Department of Commerce also reported that US households increased spending in October by 0.3%. But spending on durable goods, especially on new cars, declined by seasonally adjusted 0.7%. Economists had expected consumer spending and income to grow at 0.3%. At the same time, household incomes generally did not change in October, but wages rose seasonally by 0.4% per annum, compared with 0.1% in September.

Most DOW components completed trading in positive territory (20 out of 30). The biggest gainers were Apple Inc. (AAPL; + 1.33%). Outsiders were shares of Dow Inc. (DOW; -1.91%).

Almost all S&P sectors recorded an increase. The largest growth was shown by the services sector (+ 0.7%). Only the industrial goods sector decreased (-0.1%).

At the time of closing:

Index

Dow 28,164.00 +42.32 +0.15%

S&P 500 3,153.63 +13.11 +0.42%

Nasdaq 100 8,705.17 +57.24 +0.66%

U.S. stock-index futures rose slightly on Wednesday as optimism around U.S.-China trade talks continued, while investors assessed a slew of macro statistics and a fresh raft of earnings reports.

Global Stocks:

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

Deere (DE) reported Q4 FY 2019 earnings of $2.14 per share (versus $2.30 in Q4 FY 2018), in line with analysts’ consensus estimate.

The company’s quarterly revenues amounted to $8.703 bln (+4.30% y/y), beating analysts’ consensus estimate of $8.414 bln.

DE fell to $167.88 (-4.96%) in pre-market trading.

HP (HPQ) reported Q4 FY 2019 earnings of $0.60 per share (versus $0.54 in Q4 FY 2018), beating analysts’ consensus estimate of $0.58.

The company’s quarterly revenues amounted to $15.400 bln (+0.20% y/y), generally in line with analysts’ consensus estimate of $15.292 bln.

The company also issued in-line guidance for Q1 FY 2020, projecting EPS of $0.53-$0.56 vs. analysts’ consensus estimate of $0.53. For the full FY 2020, the company forecast EPS of $2.24-$2.32 vs. analysts’ consensus estimate of $2.23.

HPQ rose to $20.45 (+1.94%) in pre-market trading.