The modest gains Friday were enough to send major indexes to more record highs.
NEW YORK, Nov 8 (Reuters) - The three major US stock indexes posted record closing highs and the S&P 500 registered a fifth straight week of gains on Friday as investors brushed aside worries over the progress of U.S. -China trade war had agreed to roll back tariffs if their talks progress.
Stocks and bond yields dipped immediately after Trump told reporters at the White House, "I haven't agreed to anything".
KEEPING SCORE: The S&P 500 index fell 0.1% as of 10:16 a.m. That was a jump of 0.9 percent from 3,066.91 on November 1 and the fifth straight week of gains for the index, matching its longest winning streak in the past two years.
The Dow Jones Industrial Average climbed 182.24, or 0.7%, to 27,674.80 and also set a record.
Even with the conflicting signals on the trade war, momentum has seemed to be in the direction of a stopgap deal.
Wall Street hopes only that it will keep the trade war from worsening: Another round of U.S. tariffs on Chinese goods is scheduled to begin next month.
Investors are not expecting a grand bargain anytime soon that solves all the problems between the world's two largest economies.
Meanwhile, economic reports have been encouraging and have shown the job market remains strong. Interest rates are low following three cuts by the Federal Reserve, and corporate profits haven't been as bad as Wall Street feared. That in turn has more on Wall Street confident that this bull market for stocks, which already is the longest on record, can keep going. When investors feel less need for safety, they sell government bonds.
On Thursday the 10-year yield jumped 115 basis points to 1.96%, the biggest jump since the 20-basis-point move the day after Trump was elected in 2016.
Not only are yields on the rise, so is the gap between short and long-term Treasuries. That is seen as a vote of confidence in the U.S. economy by the bond market.
Bond prices fell. The yield on the 10-year Treasury rose to 1.93%. It's a relatively rare thing, and it's often correctly predicted recessions in the past, though it doesn't have a ideal record. -China trade deal in early October.
Confidence may have gotten so high recently that stock prices have become too expensive, said George Young, portfolio manager at Villere & Co.
He sees so few stocks attractively priced that he now has 15 percent of his clients' money at mutual funds and separately managed account sitting in cash. In June, when worries about the economy and trade war were higher, Young had only 5% in cash given the many bargains available.
"I wouldn't say I'm negative on the market, but when stocks get ahead of themselves, it's incumbent upon me to balance against the long term", Young said.
Qualcomm jumped 6.3% after it reported both revenue and earnings that topped Wall Street's forecasts, and Ralph Lauren surged 14.7% for the biggest gain in the S&P 500 following its own better-than-expected results. The company also said it received a positive response from a test of its planned streaming service, Disney Plus.
Gap is down 6.8% after cutting its earnings forecast and naming a new CEO.
Among decliners on Friday, shares of Gap Inc fell 7.6% after the apparel retailer said Chief Executive Officer Art Peck would leave the company, a surprise exit in the middle of a restructuring. Brent crude oil, the global standard, rose 55 cents to $62.29 a barrel. Wholesale gasoline fell 1 cent to $1.63 per gallon.
The dollar rose to 109.31 Japanese yen from 108.93 yen on Wednesday.