US STOCKS-Wall St jumps but ends off highs after partial trade deal news

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window)
* Trump announces phase 1 partial trade deal
* Indexes up: Dow 1.2%, S&P 500 1.1%, Nasdaq 1.3%

(Updates to close)
By Caroline Valetkevitch
NEW YORK, Oct 11 (Reuters) - U.S. stocks ended more than 1%
higher on Friday though well off the day's highs after the
announcement of a partial trade deal between the United States
and China.
Indexes cut their gains late in the session as the deal was
announced amid worries over potential glitches in the agreement,
strategists said.
President Donald Trump said the United States and China had
come to a substantial phase-1 trade deal, reaching agreement on
intellectual property, financial services and big agricultural
purchases. Trump, who was speaking to reporters after talks with
Chinese Vice Premier Liu He, also said the two countries are
close to ending their trade war.
The market had risen sharply earlier in the day due to
optimism for an agreement.
"Anything that was less than a comprehensive agreement was
likely to see some degree of market sell off," said Michael
James, managing director of equity trading at Wedbush Securities
in Los Angeles.
"The timing had a lot to do with the volatility. There were
15 minutes to go in the trading day on a Friday... after the Dow
had risen 700 points in the last two days," he said.
Top-level discussions between the two countries concluded
their second day on Friday. Cyclicals were among the day's best-performing groups, with
the S&P industrial index .SPLRCI up about 2% ahead of the
third-quarter earnings season, which is set to begin next week.
The Dow Jones Industrial Average .DJI rose 319.92 points,
or 1.21%, to 26,816.59, the S&P 500 .SPX gained 32.14 points,
or 1.09%, to 2,970.27 and the Nasdaq Composite .IXIC added
106.27 points, or 1.34%, to 8,057.04.
Indexes also gained for the week, with the Dow and Nasdaq
each up 0.9% and the S&P 500 up 0.6%.
Analysts expect S&P 500 earnings to have declined 3.2%
year-on-year in the third quarter, which would mark the first
decline since 2016, according to IBES data from Refinitiv.
Bets for another interest rate cut by the Federal Reserve
fell after data showed a rise in consumer sentiment for the
month of October. Apple's stock AAPL.O rose as Wedbush raised its price
target, citing confidence in the company's new video streaming
service. The industrial index was boosted by a surge in shares of
Fastenal Co FAST.O after the industrial distributor beat
quarterly profit expectations. Advancing issues outnumbered declining ones on the NYSE by a
3.14-to-1 ratio; on Nasdaq, a 3.08-to-1 ratio favored advancers.
The S&P 500 posted 27 new 52-week highs and no new lows; the
Nasdaq Composite recorded 44 new highs and 60 new lows.
Volume on U.S. exchanges was 7.55 billion shares, compared
to the roughly 7 billion average for the full session over the
last 20 trading days.