US STOCKS-Trade deal hopes propel Wall Street to record high

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* Energy sector jumps 3% as oil prices rise
* Philadelphia Semiconductor index hits record high
* Under Armour drops on federal probe, revenue outlook cut
* McDonald's top drag on Dow after CEO dismissal
* Indexes up: Dow 0.36%, S&P 0.40%, Nasdaq 0.55%

(Updates to early afternoon)
By Arjun Panchadar
Nov 4 (Reuters) - Wall Street's three main indexes hit
record highs on Monday, lifted by gains in energy and technology
stocks on hopes of a U.S.-China trade deal and an improving
domestic economy.
U.S. officials on Friday indicated that a trade deal with
China could be signed this month, with risk sentiment also
boosted by Commerce Secretary Wilbur Ross saying on Sunday that
licenses for U.S. companies to sell components to Huawei
Technologies Co Ltd HWT.UL would come "very shortly".
Eight of the 11 major S&P 500 sectors were higher, with
energy .SPNY gaining the most, up 3.13%, as oil prices rose.
The technology .SPLRCT sector gained 0.46%, as
trade-sensitive chip stocks rallied and also helped the
Philadelphia Semiconductor index .SOX to a record high.
"Signing these deals take time. All that is needed for
markets to be happy right now is for an agreement to be
announced," said Rick Meckler, partner at Cherry Lane
Investments in New Vernon, New Jersey.
"The earnings period was certainly enough to support current
stock prices. It wasn't good enough to lead stocks higher but
not bad enough for them to go any lower," he added.
The third-quarter earnings season has been fairly upbeat,
with 76% of the 360 S&P 500 companies that have reported results
so far beating profit expectations, according to Refinitiv data.
Last week's interest rate cut by the Federal Reserve, hopes
of a trade deal and a better-than-feared October jobs growth
report have been the main catalysts of the recent rally.
At 1:07 p.m. ET, the Dow Jones Industrial Average .DJI was
up 97.28 points, or 0.36%, at 27,444.64, while the S&P 500
.SPX was up 12.40 points, or 0.40%, at 3,079.31. The Nasdaq
Composite .IXIC was up 45.81 points, or 0.55%, at 8,432.20.
Financial stocks .SPSY gained 0.90%, helped by a 1.2% rise
in shares of Berkshire Hathaway Inc BRKa.N after it topped
estimates for quarterly operating profit. Sectors considered defensive plays due to their high
dividend yields - real estate .SPLRCR , utilities .SPLRCU and
consumer staples .SPLRCS - were the only ones down.
The biggest drag on the blue-chip Dow Jones index was a 3%
drop in shares of McDonald's Corp MCD.N after the fast-food
giant dismissed Chief Executive Steve Easterbrook over a
consensual relationship with an employee. Under Armour Inc UAA.N fell 17% as the sportswear maker
lowered its full-year revenue forecast for a second straight
time this year, a day after it confirmed a federal probe related
to its accounting practices. Shares in medical device maker Wright Medical surged 32%
after larger rival Stryker Corp SYK.N said it would buy the
company for about $4 billion. Stryker shares fell 4.7%.
Advancing issues outnumbered decliners by a 1.68-to-1 ratio
on the NYSE and a 1.79-to-1 ratio on the Nasdaq.
The S&P index recorded 61 new 52-week highs and no new lows,
while the Nasdaq recorded 119 new highs and 25 new lows.