Nasdaq, S&P slip; Dow hits another record high
NEW YORK: The Nasdaq and the S&P fell yesterday as investors likely took profits on tech stocks, the best performing sector in the recent rally, while the Dow touched a record high. Seven of 11 major S&P indexes were down, led by the information technology and Industrials.
The S&P information technology index, up about 26 percent this year, was on pace to post its first losses in seven sessions. “The market has been on a slow drift upward, in anticipation of the earnings season coming and the hopes about tax reform,” said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City.
“I think you’re just seeing some small profit taking in the absence of new news.” The dollar was off seven-week highs on speculation that US President Donald Trump’s choice for the next head of the Federal Reserve could be a less hawkish candidate than had previously been expected. US Federal Reserve Chair Janet Yellen is scheduled to address the Community Banking in the 21st Century Research and Policy Conference hosted by the Federal Reserve Bank of St. Louis. The rest of the week is loaded with heavy economic data, culminating in Friday’s nonfarm payrolls report for September.
The ADP National Employment Report indicated that private jobs increased by 135,000 in September, the smallest increase since October 2016 as Hurricane Harvey and Irma “significantly impacted smaller retailers.” At 9:57 am ET, the Dow Jones Industrial Average was up 6.21 points, or 0.03 percent, at 22,647.88, while the S&P 500 was down 1.9 points, or 0.08 percent, at 2,532.68. The Nasdaq Composite was down 12.65 points, or 0.19 percent, at 6,519.06.
Shares of Mylan NV surged 16.7 percent and was the biggest boost to the S&P 500 after the US FDA approved the company’s copycat version of Teva’s blockbuster multiple sclerosis drug. Shares of Teva Pharmaceutical slumped 14 percent. PepsiCo shares were down 2 percent after the company cut organic revenue forecast for the year. Advancing issues outnumbered decliners on the NYSE by 1,230 to 1,221. On the Nasdaq, 1,171 issues rose and 1,107 fell.
Madrid stocks slump
The Madrid stock market tumbled by two percent yesterday on intensifying concerns over the deepening Catalan independence crisis in Spain, dealers said. European indices also mostly fell but Frankfurt saw a modest rise as investors in Germany played catch-up after the country’s public holiday Tuesday. The dollar fell across the board as attention begins to focus on the likely make-up of the new US Federal Reserve board. European investors were held back by “ongoing jitters following the unofficial independence referendum in Catalonia,” NFS Macro analyst Nick Stamenkovic told AFP. “Spanish stocks, particularly banks have been the main casualty.”
In London, the benchmark FTSE 100 index dipped as traders brushed off a survey showing activity in the British services sector, a key driver of the UK economy, rebounded last month. “The focus may also be brought to the next Fed chair with Fed’s Yellen’s speech,” said Jingyi Pan, market strategist at IG in Singapore. “Although the names on the list may be of little surprise to the market, the conversation is expected to further heat up on this development.” — Agencies