US STOCKS-Nasdaq ends at record high as investors await stimulus

* Fed promises to keep bond purchases going
* Twitter gains after JPMorgan upgrade

(Updates with close of trading)
By Karen Pierog and Noel Randewich
Dec 16 (Reuters) - Wall Street rose on Wednesday, with
the Nasdaq closing at record highs as investors awaited a
potential fiscal economic stimulus package and after the Federal
Reserve repeated a pledge to keep its benchmark interest rate
near zero.
Stocks traded in positive territory after the Fed promised
to keep funneling cash into financial markets to fight the
recession, even as policymakers' outlook for next year improved
following initial rollout of a coronavirus vaccine. "To the extent that we are seeing a slight rise post the
meeting, it likely reflects continued confidence on the part of
investors who believe low rates for an extended period provides
support to stock prices even at these elevated levels," said
Rick Meckler, partner at Cherry Lane Investments in New Vernon,
New Jersey.
Gains in tech stocks, many of which have benefited from
changes in consumer habits because of the pandemic, pushed the
Nasdaq to a record high. Microsoft MSFT.O surged.
Investor sentiment has oscillated in recent sessions between
optimism about the early distribution of a COVID-19 vaccine and
worries about record infection rates in the United States.
Despite the pandemic, the S&P 500 has climbed over 14% in 2020.
U.S. congressional negotiators were "closing in on" a $900
billion COVID-19 aid bill that will include $600 to $700
stimulus checks and extended unemployment benefits, and Congress
could start voting within 24 hours, lawmakers and aides said.
With the market's focus on aid to consumers and business to
combat the economic fallout from the virus, the "news of the
day" was a possible deal in Washington, said William Northey,
senior investment director at U.S. Bank Wealth Management in
Minneapolis.
"That appears to be coming closer to a reality," he said.
Data showed U.S. retail sales fell 1.1% last month from
October, as new coronavirus infections and decreasing household
income weighed on spending. The S&P 500 airlines index .SPLRCALI dropped after
JPMorgan issued multiple downgrades in the sector, citing
valuations. Southwest Airlines Co LUV.N fell after flagging a higher
cash burn in the fourth quarter, as well as increased trip
cancellations in December. Alphabet GOOGL.O edged down after Texas Attorney General
Ken Paxton said he will file a multi-state lawsuit against the
parent company of Google. Unofficially, the Dow Jones Industrial Average .DJI fell
0.15% to end at 30,154.93 points, while the S&P 500 .SPX
gained 0.18% to 3,701.26.
The Nasdaq Composite .IXIC climbed 0.5% to 12,658.19.
Twitter Inc TWTR.N rose after JPMorgan upgraded the stock
to "overweight," saying it expects the social media company to
stage a significant rebound in online advertising following a
pandemic-fueled decline. Marijuana producers Aphria Inc APHA.TO APHA.O and rival
Tilray Inc TLRY.O both gained after the two companies agreed
to combine their operations and create the largest cannabis
producer by sales.