Another high for Dow: 29,000

The Dow Jones industrial average closed above 29,000 points for the first time Wednesday, and the Standard & Poor’s 500 index hit its second record high in three days.

The milestones came on a day when the market traded in a narrow range as investors weighed the latest corporate earnings reports and the widely anticipated signing of an initial trade deal between the United States and China.

The signing of the “Phase 1” U.S.-China trade deal “was telegraphed well enough that the market is kind of looking through it and toward the next phase and what that means,” said Keith Buchanan, portfolio manager at Globalt Investments.

Healthcare stocks accounted for much of the market’s gains. Utilities and makers of household goods also rose.

Those gains outweighed losses by financial firms, energy firms and companies that rely on consumer spending.

The S&P 500 index rose 6.14 points, or 0.2%, to 3,289.29, topping the high it reached Monday. The Dow rose 90.55 points, or 0.3%, to 29,030.22. The Nasdaq composite edged up 7.37 points, or 0.1%, to 9,258.70.

Smaller-company stocks fared better than the rest of the market. The Russell 2000 climbed 6.66 points, or 0.4%, to 1,682.40.

Bond prices rose. The yield on the 10-year Treasury note fell to 1.78% from 1.81%.

With the “Phase 1” agreement now a done deal, investors have more reason to focus on the rollout of corporate earnings reports over the next few weeks. Earnings have been flat to down for the last three quarters, and if the fourth quarter meets expectations, it should be around the same.

However, analysts are projecting 2020 corporate earnings growth to jump about 9.5%, which is why traders will be listening this earnings reporting season for any clues about firms’ business prospects in coming months.

“We’re expecting a reacceleration in the back end of the year, so any [company] guidance that brings any type of skepticism to that could threaten the recent rally we’ve had and the gains that we’ve accrued in the past few months,” Buchanan said.

Healthcare stocks powered much of the market’s gains Wednesday. Several health insurers climbed as investors cheered a solid fourth-quarter earnings report from UnitedHealth Group.

UnitedHealth shares rose 2.8% after the nation’s largest health insurer, which covers more than 49 million people, said its revenue climbed 4% on a mix of insurance premiums and growth from urgent care and surgery centers.