U.S. equity indexes are trading mostly higher on Wednesday on more optimism on China trade talks and a slew of mostly positive economic data.

The Dow Jones Industrial Average has edged down 2.22 points to 28,119.46 while the S&P 500 was up 7.95 points to 3,148.47 and the Nasdaq Composite Index gained 42.78 points to 8,690.71.

"We're in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever," Trump told reporters at the White House on Tuesday. On Tuesday evening Trump told former Fox News host Bill O’Reilly that he wants to make certain any deal with China is fair to the U.S. “I’m holding it up because it’s got to be a good deal,” he said. “We can’t make a deal that’s like, even. We have to make a deal where we do much better, because we have to catch up.”

Trump also said he thinks Chinese President Xi Jinping is eager to make a trade pact. “I know him and I know he’d like to make it happen,” he said.

If a phase one deal is not completed by Dec. 15, Trump may levy 15% tariffs on $160 billion of Chinese imports.

“Trump suggesting that negotiations are near completion have buoyed the idea that a deal could be struck before year end, all of which is feeding the uptick in investor sentiment and subsequent risk appetite,” Simon Ballard, macro strategist at First Abu Dhabi Bank, wrote in a note. “But we have traded up on such optimism before, only to then be let down.”

Traders also weighed a flurry of economic data.

Gross domestic product in the U.S. climbed at a 2.1% annualized pace in the third quarter, slightly higher than the initial 1.9% estimate. “There’s a lot to be thankful for in today’s GDP revision, namely the strength of the consumer,” said Mike Loewengart, vice president of investment strategy at E-Trade Financial Corp. “If our economy is one thing, it’s resilient.”

The Labor Department said initial jobless claims fell by 15,000 to a seasonally adjusted 213,000 for the week ended Nov. 23. Economists had projected claims would decrease to 221,000. The four-week moving average of initial claims fell by 1,500 to 219,750 during the week.

Orders for durable goods rose 0.6% in October, however most of that increase was linked to military goods. Economists had expected a 1.1% drop. Orders for civilian products were flat.

The Chicago Purchasing Management Index dropped to 43.2 in October -- the lowest level since December 2015 -- from 47.1 in the prior month. Economists expected a reading of 48.3 for October.

U.S. consumer spending rose 0.3% in October, above economists’ forecast a 0.2% increase, while personal income was unchanged. However, wages were up 0.4%.

The personal consumption expenditure inflation barometer rose 0.2% in October, while the core measure of inflation, which excludes the volatile food and energy sectors, edged up 0.1%.

Pending home sales fell by 1.7% in October from the prior month. Sales dropped in every U.S. region except the Northeast. The National Association of Realtors attributed the decrease to higher mortgage rates and a lack of homes available for sale.

“We still need to address and, more importantly, correct inadequate levels of inventory across the country,” said Lawrence Yun, the National Association of Realtors’ chief economist. “There is no shortage of buyers seeking homes, but a lack of available units continues to drag down the nation’s housing market and overall economy.”

Westpac Banking Corp said on Wednesday that Australia’s central bank will likely cut interest rates twice in 2020 and then bring on quantitative easing.

Overnight, Asian markets were mixed as the Hang Seng gained 0.15% while Japan's Nikkei 225 rose 0.28% and China's Shanghai Composite fell 0.13%.

European markets closed mixed with the FTSE 100 up 0.36% while Germany's DAX rose 0.38% and France's CAC 40 dropped 0.05%.

Crude oil futures slipped 1.08% to $57.79 per barrel and Brent crude dropped 0.85% at $62.27. Gold futures were down 0.47%.

The euro was down 0.18% to $1.1001 while the pound sterling gained 0.1% to $1.2879.

RELATED STORIES
China Trump