Tag Archives: nasdaq

Dow closing in on 20,000; Nasdaq hits record high

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S.,

By Tanya Agrawal

(Reuters) – The Dow and the Nasdaq hit record highs on Tuesday, with the blue-chip index just 13 points shy of the 20,000 mark, a level it has never scaled.

Goldman Sachs, which was up about 1 percent, gave the biggest boost to the Dow.

U.S. stocks have been on a tear since the Nov. 8 presidential election, with the Dow up 9 percent and S&P more than 6 percent on bets that President-elect Donald Trump’s plans for deregulation and infrastructure spending will boost the economy.

“It’s just the momentum since the election,” said Jeff Zipper, managing director for investments at Private Client Reserve at U.S. Bank in Palm Beach, Florida.

“The market is focused on the Trump agenda, which is tax cuts, infrastructure spending and deregulation. There’s not a lot of selling going on.”

However, trading volumes were muted as the last full trading week before the holiday season gets underway where movements may be pronounced.

There are also concerns that the post-election rally may have gone too far too soon.

“I think we’re a little bit concerned that market trends may be extended a little bit and market prices need to convert to fair value, and it’s not unusual to see a pullback after such a move,” said Zipper.

The S&P 500 is trading at 17.9 times forward 12-month earnings, above the 10-year median of 14.7 times, according to StarMine data.

At 11:08 a.m. ET (1608 GMT) the Dow Jones industrial average was up 83.92 points, or 0.42 percent, at 19,966.98.

The S&P 500 was up 8.69 points, or 0.38 percent, at 2,271.22. The index came within 5 points of its record high.

The Nasdaq Composite was up 25.67 points, or 0.47 percent, at 5,483.11.

Eight of the 11 major S&P sectors were higher, with the telecommunications index’s 0.99 percent rise leading the gainers.

The financial index was also up 0.93 percent. The index has risen 18.5 percent since the election, buoyed by Trump’s deregulation plans and the prospect of higher interest rates.

Brent oil prices rose by $1 to a one-week high on forecasts of a steep draw in U.S. crude stocks that could indicate global oversupply is starting to shrink.

The dollar climbed to a 14-year high after Federal Reserve Chair Janet Yellen’s comments about the labor market reinforced the notion of a faster pace of U.S. interest rate hikes next year than had been expected.

General Mills  fell 3.3 percent to $61.00 after the Cheerios cereal-maker’s quarterly results missed expectations.

Nvidia <NVDA.O> was up 3.9 percent at $105.59 after brokerages Goldman Sachs and Mizuho raised their price targets on the chipmaker’s stock. The stock was among the big Nasdaq boosters.

Advancing issues outnumbered decliners on the NYSE by 1,914 to 901. On the Nasdaq, 1,819 issues rose and 858 fell.

The S&P 500 index showed 29 new 52-week highs and no new lows, while the Nasdaq recorded 164 new highs and 20 new lows.

(Reporting by Tanya Agrawal in Bengaluru; Editing by Anil D’Silva and Saumyadeb Chakrabarty)

Wall Street falls after Fed raises rates; energy weighs

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S.

By Rodrigo Campos

NEW YORK (Reuters) – U.S. stocks fell in volatile trading on Wednesday after the Federal Reserve raised interest rates by a quarter point and signaled hikes could come next year at a faster pace than some expected.

The Fed’s decision comes as President-elect Donald Trump, who will be sworn in next month, is seen cutting taxes and increasing spending on infrastructure. Central bank policymakers shifted their outlook to one of slightly faster growth and lower unemployment.

“The Fed ramped up the pace of rate hikes on a hope and a prayer of faster growth in 2017,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

“Until Trump’s tax and spending plan actually gets implemented, it’s hard to justify the slight increase in the slope of rate hikes.”

The Dow Jones industrial average fell 27.9 points, or 0.14 percent, to 19,883.31, the S&P 500 lost 6.02 points, or 0.26 percent, to 2,265.7 and the Nasdaq Composite dropped 7.17 points, or 0.13 percent, to 5,456.66.

Since the Nov. 8 U.S. presidential election, stocks have risen on bets that Trump will enact business-friendly policies and stimulate the economy. However, some market participants are concerned that equities are pricing in a very favorable scenario, leaving them vulnerable.

Markets had all but priced in a rate increase at the Fed but the faster pace of increases seen next year may give traders an excuse to cash in the recent gains.

“I’m beginning to think the market might be looking for an excuse to take some profits,” said David Schiegoleit, managing director at U.S. Bank Private Client Reserve in Los Angeles.

“We’ve had such a strong run here for the past couple of weeks that any excuse to take some money off the board might hold a little bit more water than usual. That could be what we see here and heading into the close.”

Oil prices fell more than 3 percent on renewed concerns about an oil glut sparked by rising U.S. crude inventories in storage.

Oil major Exxon declined 1.6 percent and was among the largest drags on the Dow.

Declining issues outnumbered advancing ones on the NYSE by a 2.47-to-1 ratio; on Nasdaq, a 2.29-to-1 ratio favored decliners.

The S&P 500 posted 30 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 102 new highs and 38 new lows.

(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

Energy shares lift Dow, S&P techs drag Nasdaq

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S.,

By Tanya Agrawal

(Reuters) – The S&P 500 and the Dow hit record highs on Monday, fueled by energy shares, while the Nasdaq was lower, dragged down by technology stocks, a day ahead of the Fed’s two-day meeting.

Oil prices gained as much as 6.5 percent to an 18-month high after OPEC and some of its rivals reached their first deal since 2001 to jointly reduce output to try to tackle global oversupply and boost prices.

The S&P energy index was the top performing sector with a 1.7 percent rise. Oil major Exxon was up 2.54 percent, providing the biggest boost to the Dow and S&P. Chevron rose 2.2 percent.

President-elect Donald Trump’s expected agenda of economic stimulus and reduced taxes and regulations has fueled a market rally, with the benchmark S&P 500 rising 5.6 percent since Nov. 8 to Friday’s close.

The Dow has closed at record highs 14 times since the election.

“The market has been rising on the incoming administration’s proposals, but how many of those actually pass through Congress remains to be seen,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

“Investors are expecting the Fed to hike rates but are more interested in the tone of the statement.”

Market participants are keeping a close watch on the U.S. Federal Reserve’s last meeting for the year, beginning Tuesday, with a statement from Fed Chair Janet Yellen on Wednesday.

At 10:58 a.m. ET (1558 GMT) the Dow Jones industrial average was up 32.96 points, or 0.17 percent, at 19,789.81, the S&P 500  was down 1.68 points, or 0.074352 percent, at 2,257.85 and the Nasdaq Composite was down 30.87 points, or 0.57 percent, at 5,413.63.

Six of the 11 major S&P sectors were higher.

The consumer discretionary led the decliners with a 0.82 percent fall, weighed down by a 1.24 percent drop in Amazon’s shares.

The industrials sector was down 0.58 percent, dragged down by defense stocks.

Lockheed Martin declined 3.9 percent at $249.22 after Donald Trump tweeted that the company’s F-35 program and costs were “out of control”. Other defense stocks, such as General Dynamics, Raytheon, and Northrop Grumman, were down between 2.7-4.5 percent.

Viacom fell 8.5 percent to a two-month low of $35.35 after Sumner Redstone’s privately-held National Amusements withdrew its merger proposal for CBS and Viacom, according to a source familiar with the situation. CBS was down 2.7 percent.

Ophthotech slumped 84.9 percent to a life-low of $5.85 after Novartis said a combination of its eye drug along with the company’s did not produce better outcomes.

Declining issues outnumbered advancers on the NYSE by 1,793 to 1,058. On the Nasdaq, 1,808 issues fell and 887 advanced.

The S&P 500 index showed 59 new 52-week highs and one new low, while the Nasdaq recorded 165 new highs and 16 new lows.

(Reporting by Tanya Agrawal; Editing by Sriraj Kalluvila)

Wall St. at record highs, Dow tops 19,000 for first time

raders work on the floor of the New York Stock Exchange (NYSE) in New York City, NY,

By Yashaswini Swamynathan

(Reuters) – The three main U.S. stock indexes hit records highs for the second straight day on Tuesday, with the Dow topping 19,000 points and the S&P 500 moving past 2,200 points for the first time ever as the Donald Trump-fueled rally continued.

The small cap Russell 2000. RUT index hit an intraday high for the fourth day in a row. The index, along with the Dow, Nasdaq and S&P, closed at record highs on Monday, the first such instance since December 1999.

Trump’s pro-growth policies, including promises of tax cuts, higher spending on infrastructure and simpler regulations in the banking and healthcare industries, have led a rally, especially in those sectors, since the election on Nov. 8.

The consumer discretionary sector’s 0.74 percent increase on Tuesday led the gainers among the 11 major S&P sectors, boosted by strong quarterly reports from Dollar Tree and Signet Jewelers.

The healthcare sector was the only laggard, dropping 0.74 percent, weighed down by Medtronic.

The Dow took 121 days, or about five months, to move to 18,000 points from 17,000 points, but has since crawled along. The index took another 483 days, or roughly two years to breach 19,000 points.

“In itself the numbers don’t mean much, but from a psychological or milestone standpoint it’s a good achievement for the market,” Adam Sarhan, chief executive of 50 Park Investments, said of the record-high levels of the indexes.

“Strength begets strength. The more we can continue to rally, the more people who are on the sidelines want to jump in especially because there’s so much cash on the sidelines. The market going up is the single best advertisement for the market.”

At 10:07 a.m. ET the Dow Jones Industrial Average was up 45.47 points, or 0.24 percent, at 19,002.16, easing after hitting an all-time high of 19,014.73.

The S&P 500 SPX was up 4.2 points, or 0.19 percent, at 2,202.38. It hit a high of 2,203.56.

The Nasdaq Composite was up 19.69 points, or 0.37 percent, at 5,388.55, after touching a high of 5,392.26.

Dollar Tree surged 9.5 percent to $89.91 after the biggest U.S. dollar-store chain reported a better-than-expected quarterly profit.

Signet was up 7.5 percent at $95.49 after the jeweler reported a much better-than-expected quarterly profit and raised its profit forecast.

Medtronic tumbled 7.5 percent to $74.5 after the medical device maker reported quarterly revenue that missed expectations and cut its full-year adjusted earnings forecast.

Advancing issues outnumbered decliners on the NYSE by 2,019 to 740. On the Nasdaq, 1,554 issues rose and 930 fell.

The S&P 500 index showed 44 new 52-week highs and four new lows, while the Nasdaq recorded 160 new highs and eight new lows.

(Reporting by Yashaswini Swamynathan and Tanya Agrawal in Bengaluru; Editing by Anil D’Silva and Savio D’Souza)

Nasdaq hits record high after Fed leaves rates unchanged

Floor governor Giacchi gives a price for Noble Midstream Partners LP, during the company's IPO on the floor of the New York Stock

By Yashaswini Swamynathan

(Reuters) – The Nasdaq hit a record intraday high on Thursday amid broad gains in U.S. stocks, a day after the Federal Reserve stood pat on interest rates.

While the risks to economic outlook were roughly “balanced”, the Fed maintained rates as inflation continued to run below its 2 percent target and members saw room for improvement in the labor market.

The central bank slowed the pace of future hikes and cut its longer run interest rate forecast to 2.9 percent from 3 percent, but sent a strong signal for a move by the end of this year.

“The Fed probably appeared less hawkish than what the markets had expected,” said Ryan Larson, head of equity trading at RBC Global Asset Management in Chicago. “I think the market continues to be focused on the Fed pushing a hike for later as a good thing rather than bad.”

The consensus among economists is for a hike in December as the Fed’s November meeting comes right around the U.S. Presidential elections.

The probability of a November hike stands at a modest 12.4 percent, and rises to 58.4 percent for December, according to the CME Group’s FedWatch tool.

The dollar index dropped 0.6 percent on Thursday, and was on track to mark the second straight day of losses after the central bank’s decision.

Oil prices rose about 1.8 percent as the dollar fell and U.S. crude inventories recorded a surprise drop.

At 9:36 a.m. ET (1336 GMT), the Dow Jones Industrial Average was up 132.52 points, or 0.72 percent, at 18,426.22.

The S&P 500 was up 15.01 points, or 0.69 percent, at 2,178.13.

The Nasdaq Composite was up 32.98 points, or 0.62 percent, at 5,328.22, after rising as much as 0.65 percent to a record of 5329.92.

The S&P energy index surged 1.33 percent and was the top gainer among the 11 major sectors of the benchmark index.

Adding some support to the Fed’s plans for at least one hike this year was a report that showed the number of Americans applying for unemployment last week fell to a two-month low.

Shares of Apple rose 0.9 percent to $114.56 and was the top influence on the S&P and the Nasdaq after Nomura and RBC raised their price targets.

Red Hat rose 6.7 percent to $82.27 after the Linux operating system distributor reported second-quarter revenue and profit that beat market expectations.

One weak spot was Jabil Circuit, which dropped nearly 6 percent to $22.34 after the contract electronics maker said it intended to realign its business at a cost of $195 million over two years.

Advancing issues outnumbered decliners on the NYSE by 2,552 to 185. On the Nasdaq, 1,804 issues rose and 429 fell.

The S&P 500 index showed 26 new 52-week highs and no new lows, while the Nasdaq recorded 80 new highs and three new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Don Sebastian)

Wall Street rose Monday while investors brace themselves

Traders work on the floor of the NYSE

(Reuters) – Wall Street rose on Monday, with the Dow touching highs not seen since July, as Hasbro and Disney lifted the consumer discretionary sector while investors braced for a flurry of quarterly earnings reports through the week.

Chevron climbed 1.25 percent as crude prices steadied from earlier losses caused by the collapse of talks among major producers to tackle a stubborn global surplus.

A recent rebound in oil and signs that the U.S. economy was recovering have helped stocks rally from a steep selloff earlier this year that had pushed the S&P 500 down as much as 10.5 percent.

The index is now up 2.3 percent in 2016 and only about 2 percent short of its all-time high, while the Dow breached 18,000 for the first time since July 21.

That came despite bleak expectations for first-quarter earnings reports, many of which flow in this week. Earnings of S&P 500 companies are seen falling 7.7 percent on average, with the energy sector weighing heavily, according to Thomson Reuters I/B/E/S.

Investors will closely watch IBM and Netflix as they hand in their reports after the bell. Netflix was down 3.2 percent.

“This is a market where beating and exceeding does not guarantee you a higher stock price, but missing guarantees you’re going to get killed on the downside,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa. “That’s the sign of a fragile market.”

At 2:31 pm, the Dow Jones industrial average was up 0.49 percent at 17,985.53 points and the S&P 500 had gained 0.52 percent to 2,091.54. The Nasdaq Composite added 0.34 percent to 4,955.09.

All of the 10 major S&P sectors were higher, led by a 1.2 percent rise in energy. The consumer discretionary sector was up 0.84 percent, led by Hasbro. The toymaker jumped 5.7 percent after reporting better-than-expected quarterly profit and revenue.

Disney rose 2.7 percent after “Jungle Book” dominated the weekend box office, grossing more than $100 million.

Advancing issues outnumbered decliners on the NYSE by 2,066 to 913. On the Nasdaq, 1,925 issues rose and 888 fell.

The S&P 500 index showed 19 new 52-week highs and one new low, while the Nasdaq recorded 52 new highs and 16 lows.

(Additional reporting by Abhiram Nandakumar in Bengaluru; Editing by Nick Zieminski)