Markets Right Now: Dow still at record, but S&P 500 slips

ANALYST TAKE: “Investors are trying to strike the right balance between positioning for a major dose of US fiscal stimulus and not getting too committed, given the uncertainty surrounding what policies the new Trump Administration will actually implement”, Margaret Yang, a market analyst at CMC Markets, said in a commentary.

US stocks closed higher Tuesday as the Dow industrials and S&P 500 cleared theoretical milestones but major indexes simultaneously reached record highs for a second straight day.

Markets were calm and stocks traded slightly lower Wednesday morning after closing at historic highs on Tuesday.

A slew of gold mining stocks, including two of the world’s largest gold producers, fell. The U.S. currency hasn’t been this strong since March 2003.

SHINING: Jeweler Signet raised its outlook and its stock picked up $3.93, or 4.4 percent, to $92.81. The S&P 500 financial index is up 12 per cent since the election while the S&P 500 itself is up 3 per cent. Tech company stocks had fallen 0.4 percent since the USA election. It went as high as 19,014 earlier.

European shares steadied, with basic resources companies underpinning the broader market following a rise in metals prices.

With Japan on holiday, Australia’s main index .AXJO led the action in Asia with a rise of 1.35 percent to a one-month top helped by strength in bulk commodity prices. The data will not inhibit the Federal Reserve from likely raising rates next month.

Ironically enough, the market rallied sharply the Monday before Election Day after FBI Director James Comey cleared Clinton – an event that many investors interpreted as a sign that Clinton would wind up defeating Trump after all. Japanese markets were closed for a holiday.

The S&P 500 is up 160.78 points, or 7.9 percent.

The Dow Jones Industrial Average (DJIA – 19,083.18) hit a new all-time intraday best of 19,083.76, before settling up 59.3 points, or 0.3%. The Standard & Poor’s 500 index lost 3 points, or 0.1 percent, to 2,195. The Nasdaq lost 0.11% to 5,380.6.

Visit MarketWatch.com for more information on this news. “You could continue to see a little bit an overreaction either way”.

Other indexes also set records Monday. The yield on that note is at its highest in more than six years.

“Speculation of a December rate hike reached mind-boggling levels”, said Lukman Otunuga, research analyst at Forex Time Ltd (FXTM) in Croydon, England.

Another reason for big stock gains in recent weeks more generally? The last time gold prices settled below that was February 5 at $1,157.70 per ounce.

Dow industrials advanced for a second consecutive day Tuesday, topping a major milestone ahead of a deluge of market events before Thanksgiving.

MAKING BANK: Higher bond yields are linked to higher interest rates, so the rising yields helped bank stocks turn higher. “Emerging markets have found support and are even attracting buyers”, said Weston.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.38 percent.

U.S. crude and Brent crude have recovered this week on renewed market hopes an output cut can be agreed by members of the OPEC cartel of producing nations next week.