Dow index falls out of the black for 2017
NEW YORK — The Dow Jones industrial average erased its gains for 2017 on Thursday as it fell for the fifth day in a row, part of a pullback for stock indexes as Treasury yields continued their upward march.
Losses were widespread, with three stocks falling on the New York Stock Exchange for every one that rose. Still, the Dow is not far from its record closing high of 19,974.62, set one month ago.
The Russell 2000, which tracks smaller companies, also turned lower for the year.
Stocks have slowed in January following an electrifying jump higher since Election Day as investors wait to see what a Donald Trump presidency will really mean for stocks. There are expectations for lower taxes and less regulation on businesses.
But on the possible downside, increased tariffs or trade restrictions could mean drops in profits for big U.S. companies.
Even with all the uncertainties, the market has remained relatively calm. The S&P 500 hasn’t swung by 1 percent, either up or down, since early December. And the VIX index, which market pros use to gauge how nervous investors are, is still about 50 percent lower than where it was a year ago.
Rich Weiss, senior portfolio manager at American Century Investments, calls that “irrational complacency.”
Bond yields continued their march higher after more economic reports joined the recently growing pile of encouraging data.
One of Thursday’s reports showed that the number of workers seeking unemployment claims fell last week to its lowest level in more than 43 years, a sign that corporate layoffs are subsiding. Another report showed that homebuilders broke ground on more new homes in December, capping a solid 2016 for the industry.