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* U.S.-China trade talks hit snag over farm purchases- WSJ
* Powell says 'sustained expansion' likely for U.S. economy
* Disney top boost to Dow as Disney+ reaches 10 mln sign-ups
* SmileDirectClub shares plunge after firm posts loss
* Indexes: Dow up 0.33%, S&P up 0.07%, Nasdaq down 0.05%
(Updates to close of U.S. markets)
By Lewis Krauskopf
Nov 13 (Reuters) - The Dow Jones Industrial Average and the
S&P 500 posted record closing highs on Wednesday helped by a big
jump in Walt Disney shares, but the Nasdaq fell as stocks were
kept in check by fresh uncertainty over U.S.-China trade
relations.
The Wall Street Journal reported during the session that
U.S.-China trade negotiations have hit a snag over farm
purchases, the latest development in a dispute between the two
countries that has convulsed markets for more than a year.
The three indexes had all drifted higher earlier in the day
after Federal Reserve Chairman Jerome Powell said U.S. central
bankers see a "sustained expansion" ahead for the country's
economy. Stocks have recently climbed to record levels, fueled by Fed
interest rate cuts, third-quarter earnings exceeding low
expectations and signs the economy is bottoming. But questions
about an initial agreement to help resolve the U.S.-China trade
dispute remain a key wild card.
“It's still about China and investors trying to decide
whether there's a deal coming or not," said Rick Meckler,
partner at Cherry Lane Investments in New Vernon, New Jersey.
"It's really left investors uncertain," Meckler said. "They
don't want to sell into a possible announced deal, but they also
don't want to get whipsawed by, again, some disappointment over
it."
The Dow Jones Industrial Average .DJI rose 92.1 points, or
0.33%, to 27,783.59, the S&P 500 .SPX gained 2.2 points, or
0.07%, to 3,094.04 and the Nasdaq Composite .IXIC dropped 3.99
points, or 0.05%, to 8,482.10.
Among the S&P 500 sectors, traditionally defensive groups
such as utilities .SPLRCU , real estate .SPLRCR and consumer
staples .SPLRCS ended sharply positive, while cyclical
sectors, such as financials .SPSY , energy .SPNY and
materials .SPLRCM , which are known for tracking the health of
the economy, lagged.
"The leadership today is defensive," said Mona Mahajan, U.S.
investment strategist with Allianz Global Investors.
Investors also had their eyes on geopolitical developments,
including presidential impeachment hearings in the United States
and protests in Hong Kong. Walt Disney Co DIS.N shares jumped 7.3% after the media
company said its new streaming service, Disney+, had reached 10
million sign-ups since launching the previous day. shares provided the biggest boost to the Dow and the S&P
500.
Shares of streaming rival Netflix Inc NFLX.O sank 3.0%.
SmileDirectClub Inc SDC.O shares slumped 20.3% after the
teeth alignment company reported a bigger quarterly loss.
About three-fourths of S&P 500 companies have topped
earnings estimates in their third-quarter reports, but the
companies are still expected to have posted an overall 0.5%
decline in earnings, according to Refinitiv data.
Declining issues outnumbered advancing ones on the NYSE by a
1.17-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored decliners.
The S&P 500 posted 25 new 52-week highs and 2 new lows; the
Nasdaq Composite recorded 77 new highs and 124 new lows.
About 6.8 billion shares changed hands in U.S. exchanges,
roughly in line with the daily average over the last 20
sessions.