Indexes struggle higher, led by tech
NEW YORK» Major U.S. stock indexes wobbled and finished mostly higher Tuesday, led by technology companies and a handful of retailers.
The gains were enough to mark more record highs for several of the indexes, though not the Dow Jones Industrial Average.
Trading was lighter than usual, and stocks flipped between small gains and small losses for most of the day.
Outside of technology and retail, most other stocks finished lower. Energy companies dipped along with oil prices, and an increase in bond yields dented high-dividend stocks such as utilities and phone companies, which investors tend to buy when they are seeking income.
Canada’s foreign minister arrived in Washington to resume trade talks Tuesday, a day after stocks rose on news that the Trump administration had reached a preliminary deal with Mexico to replace the North American Free Trade Agreement.
“If we do get a new agreement in North America with lower overall tariffs or trade restrictions, long term that’s a pretty positive result,” said Jim Paulsen, chief investment strategist for the Leuthold Group.
The S&P 500 index rose 0.78 points to 2,897.52. The Dow Jones Industrial Average rose 14.38 points, or 0.1 percent, to 26,064.02. The Nasdaq composite gained 12.14 points, or 0.2 percent, to 8,030.04.
The Russell 2000 index of smaller-company stocks inched up 0.02 point to 1,724.42.
The S&P 500, Nasdaq and Russell all closed at record highs. More stocks fell than rose on the New York Stock Exchange.
Shoe retailer DSW surged 20.2 percent to $32.70 after reporting second-quarter results that were far stronger than analysts expected. Sales surpassed Wall Street forecasts, and the company raised its estimates for the rest of the year.
Tiffany did the same, and its stock added 1 percent to $131.07. Like many other retailers, their stocks had slumped in recent years due to growing competition from online retailers and sinking sales in stores.
Retail stocks have climbed recently as they improved their online businesses. DSW has risen 53 percent in 2018 and Tiffany has rallied 26 percent. When the companies fall short of expectations, however, their stocks have plunged.
That happened to Macy’s, Gap and J.C. Penney in the second quarter. And on Tuesday, Best Buy fell 5 percent to $77.57 after issuing a disappointing forecast for the current quarter.
Apple added 0.8 percent to $219.70 as technology companies, the most valuable part of the S&P 500, did better than the rest of the market. Chipmaker Xilinx rose 2.3 percent to $76.99, and Qualcomm gained 3.6 percent to $69.78.