NEW YORK: Strong gains by banks helped propel the Dow to a second straight record Wednesday following robust US growth data, but high-flying technology shares tumbled, denting the Nasdaq.
The mixed-bag outcome came as the Commerce Department said the US economy in the third-quarter expanded by 3.3 percent, the strongest performance since the third quarter of 2014 and better than the initial estimate.
The Dow Jones Industrial Average ended the day with a 0.4 percent gain at 23,940.68, beating Tuesday’s record finish.
The broad-based S&P 500 slipped from the previous day’s record close to end at 2,626.07, down less than 0.1 percent, while the tech-rich Nasdaq Composite Index sank 1.3 percent to 6,824.39, also retreating from the prior session record.
Analysts described Wednesday’s trading as a rotation, with a sell-off among sought-after names such as Apple, Amazon, Google-parent Alphabet and Facebook, all of which fell two percent or more.
At the same time, financial shares such as JPMorgan Chase, Bank of America and Wells Fargo added at least two percent.
Beaten-down retail shares also prospered, with Macy’s surging 8.2 percent, Nordstrom 7.2 percent and Target 8.9 percent. Early figures based on the “Black Friday” holiday shopping weekend suggest the gift-giving season has opened well for retailers.
Transportation shares also were flying, with Delta Air Lines winning 3.0 percent, United Continental 3.2 percent and freight rail company CSX 4.8 percent.
But American Airlines added just 0.1 percent following news that a scheduling snafu left it short of pilots on more than 15,000 flights during the key holiday travel period. The airline said it expects to avoid cancellations by paying reserve pilots up to 150 percent of their hourly rate.
Tiffany jewelers, of the distinctive turquoise blue box, dropped 1.6 percent after reporting third-quarter net earnings rose five percent to $100 million, while comparable store sales were flat.
Chipotle Mexican Grill jumped 5.6 percent after announcing it has launched a search for a new chief executive and that founder Steve Ells would step down from the post. The restaurant chain has stumbled badly with food safety problems over the last couple of years.
Source: Brecorder.com
