Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Breaking News

Gold Has Best Week Since October on U.S. Payrolls Shock

Dow edges up to record high, financials dips

Stock MarketsNov 07, 2017 04:54PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Trader Greg Rowe reacts after the closing bell on the floor of the NYSE in New York

By Noel Randewich

(Reuters) - The Dow Jones Industrial Average eked out a fourth consecutive record high close on Tuesday, while the S&P 500 ended marginally lower after a disappointing profit forecast from Priceline and a drop in financials.

The S&P 500 financial index led decliners with a 1.33 percent fall.

Defensive sectors such as utilities and consumer staples were the top gainers on the S&P 500, both rising more than 1 percent. Procter & Gamble added 1.08 percent.

The U.S. 2-to-10-year Treasury yield curve hit its flattest in a decade, potentially cutting into the profits of banks, which borrow money at short-term interest rates in order to lend it out at longer terms. US/N

Goldman Sachs (NYSE:GS) lost 1.51 percent and weighed the most on the Dow, while JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC) were among the top three drags on the S&P 500.

Priceline slumped 13.52 percent while travel-review website operator TripAdvisor dropped 23.22 percent to a five-year low after both companies gave soft quarterly profit forecasts.

"Companies that miss expectations are being punished severely. That's proof that there's nervousness in the market," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.

Investors were also nervous about the potential outcome of a Republican plan to cut corporate taxes, unveiled last week. As well as slashing the corporate rate to 20 percent from 35 percent, the bill would eliminate many tax breaks and is expected to face opposition from interest groups.

The Russell 2000 index, which tracks U.S. small-cap stocks, dropped 1.26 percent.

"There is some skepticism about the tax bill going through," said Donald Selkin, chief market strategist at Newbridge Securities in New York.

"The fact that the Russell is down is a sign that there are worries about the fate of the tax bill because smaller companies tend to pay higher tax rates than bigger companies."

The S&P 500 has risen about 15 percent in 2017, helped by strong earnings, an improving economy and promises by President Donald Trump to cut taxes.

The Dow Jones Industrial Average ended up 0.04 percent at 23,557.23 after spending most of the day in negative territory. The S&P 500 dipped 0.02 percent to 2,590.64.

The Nasdaq Composite slipped 0.27 percent to 6,767.78.

In extended trade, Snap Inc (NYSE:SNAP) slumped 16 percent after the Snapchat owner reported lower-than-expected daily active users for the third quarter.

During the session, Valeant Pharmaceuticals (NYSE:VRX) surged 17.11 percent after the company's profit beat Wall Street estimates.

Mallinckrodt (NYSE:MNK) slumped 35.50 percent to an all-time low after the drugmaker reported dismal quarterly revenue and warned of slower sales for Acthar, its biggest source of revenue.

Declining issues outnumbered advancing ones on the NYSE by a 1.39-to-1 ratio; on Nasdaq, a 2.50-to-1 ratio favored decliners.

About 7.0 billion shares changed hands on U.S. exchanges, above the 6.4 billion daily average over the last 20 sessions.

Dow edges up to record high, financials dips
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email