Nasdaq at record for 3rd day in row
The Nasdaq composite index ticked higher to another record Tuesday, but a drop by energy stocks held back other indexes.
It was the third straight day that the Nasdaq notched an all-time high, but the index has risen only a marginal amount each of those days. Stocks have been stuck in a largely listless trading pattern in recent weeks.
Investors keep crossing off reasons to fear. Last week’s solid jobs report gave reassurance that the U.S. economy is improving despite a weak showing at the start of the year.
Companies have been turning in a slew of strongerthan-expected profit reports, which has tempered concerns that stocks have grown too expensive relative to earnings. And last weekend’s presidential election in France raised confidence that voters may be turning their backs on a nationalistic brand of politics that could hurt global trade.
“This is almost like the post-celebration letdown,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management. “Everyone is just relaxing, trying to figure out what direction to go next.”
It could stay that way for a few days: There are few events on the calendar with market-moving potential.
The day’s biggest excitement involved energy stocks, which deepened their losses for the year. Energy stocks in the Standard & Poor’s 500 index sank 0.9%, tied for the day’s biggest drop among the 11 sectors that make up the index. They’re down 10.8% for 2017, while the S&P 500 is up 7.1%.
The energy sector followed the price of oil lower. Benchmark U.S. crude fell 55 cents to $45.88 a barrel. Brent crude, the international standard, fell 61 cents to $48.73 a barrel.
High-dividend stocks were also weak. Utilities in the S&P 500 lost 0.9%, while telecoms fell 0.6%.
Demand for stocks that pay high dividends has dulled as bonds have begun to pay more in interest. The yield on the 10-year Treasury note held steady at 2.39% on Tuesday, but it’s up from a low of 2.17% three weeks ago.
Marriott International jumped 6.4% to $102.50 after reporting stronger-than-expected earnings for the latest quarter.
Hertz Global Holdings sank 14.2% to $12.80 after reporting a larger loss for the last quarter than expected.
Pandora Media fell 4.4% to $9.94 after the streaming music company cut its revenue estimate for the year and shook up its board.
The euro fell to $1.0869 from $1.0930. The dollar rose to 114.28 yen from 113.07 yen, and the British pound fell to $1.2927 from $1.2943.
Gold fell $11 to $1,216.10 an ounce, silver fell 19 cents to $16.07 an ounce, and copper was flat at $2.50 a pound.