Gains in defence shares as well as healthcare helped to keep US stocks in positive territory on Thursday.

S&P 500 industrials rose, led by defence contractors Lockheed Martin and Northrop Grumman , after US President Donald Trump unveiled a revamped US missile defence strategy.

Also among sectors with the biggest gains were materials and healthcare, a sector that has been a laggard this year after having outperformed all other major S&P sectors in 2018.

“Stocks have been supported this year by a lot of rebalancing that's going on. There is a ritual in the stock market of buying what was down the most or selling what was up the most the prior year,” said John Augustine, chief investment officer for Huntington Private Bank in Cincinnati.

Those gains helped to offset declines in other areas. Morgan Stanley shares fell after it reported disappointing earnings, hot on the heels of similarly weak numbers from JPMorgan Chase earlier in the week.

Investors have also begun to worry that the US government shutdown is taking a toll on the US economy. White House economic adviser Kevin Hassett said the shutdown would shave 0.13 per cent off quarterly economic growth for each week that it continues.

The Dow Jones Industrial Average rose 17.53 points, or 0.07 per cent, to 24,224.69, the S&P 500 gained 8.52 points, or 0.33 per cent, to 2,624.62 and the Nasdaq Composite added 19.31 points, or 0.27 per cent, to 7,054.00.

Some investors took heart from Beijing's confirmation that Chinese Vice Premier Liu He will head to the United States on January 30 for more negotiations with Washington. Recent talks to resolve a protracted trade battle between the US and China brought little progress.

Adding to concerns was legislation introduced by US lawmakers on Wednesday that would ban the sale of US chips or other components to Huawei or other Chinese telecommunications equipment makers that violate US sanctions or export control laws. That came shortly before the Wall Street Journal reported federal prosecutors were investigating allegations that Huawei stole trade secrets from US businesses.

US Treasury yields ticked up as better-than-expected economic data offset the trade tensions between China and the United States, holding down safe-haven bids for US government debt. Benchmark 10-year notes last fell 1/32 in price to yield 2.7325 per cent, compared with 2.729 per cent late on Wednesday.

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