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Stocks - Dow Closes at Record Above 29K as U.S., China Sign 'Landmark' Deal

By Yasin Ebrahim – The Dow closed in record territory Wednesday, shrugging off mixed corporate earnings as investors cheered the conclusion of the phase one U.S.-China trade deal.

The S&P 500 rose 0.19%, while the Nasdaq Composite added 0.08% and the Dow Jones Industrial Average jumped 0.31%.

The U.S. and China signed the phase one trade agreement, halting their two-year trade war that had weighed on global growth.

President Donald Trump said the "landmark” deal would benefit American farmers. But some view the deal as fragile as it includes an option for China to quit the trade deal should the U.S. re-impose tariffs.

Under the terms of the deal, the U.S. cut tariffs on $120 billion in Chinese goods to 7.5% from 15%. China agreed to increase purchases in the U.S. by $200 billion over the next two years in manufactured goods, agriculture, energy and services.

Bank of America (NYSE:BAC) fell 2% after warning of weaker net interest income in the first half of the year. The Wall Street bank posted results that beat estimates on the top and bottom lines.

Goldman Sachs (NYSE:GS) was little changed after its earnings fell short of estimates amid a rise in legal costs concerning the 1MDB scandal.

Target (NYSE:TGT), meanwhile, fell 7% after its sales over the crucial holiday season missed its expectations amid softer demand for electronics and toys.

The weakness in sales was likely driven by a shorter holiday selling season, Citigroup (NYSE:C) suggested. The bank said Target's results "give us no reason to change our view that TGT is a retail winner for years to come."

Energy kept a lid on the broader market as oil prices were hurt by weekly data showing a large build in crude products and record U.S. output.

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