Dow Extends Gains After Crossing Milestone
27 January 2017 - 7:42AM
Dow Jones News
By Akane Otani and Georgi Kantchev
The Dow Jones Industrial Average edged higher Thursday,
extending gains after it closed above 20000 for the first time
ever.
Moves in major indexes were muted, with the S&P 500 flipping
between slight gains and losses for much of the day after indexes
surged to a trifecta of records in the previous session. While
shares of financial companies ticked higher, putting the Dow
industrials on course to post a fresh closing high, declines in
shares of health-care and tech companies kept other broad indexes
under pressure.
The Dow industrials rose 38 points, or 0.2%, to 20106. The
S&P 500 fell less than 0.1%, and the Nasdaq Composite was near
unchanged.
Qualcomm shares fell 5.5% after the chip maker reported after
the bell Wednesday that its net income -- dented by fees for
alleged antitrust violations -- fell 54% in the latest quarter.
Meanwhile, Verizon shares lost 1.4% after The Wall Street
Journal reported that the company is exploring a combination with
Charter Communications. Shares of Charter jumped 6.7%.
Many investors say they remain optimistic but cautious about the
path forward for U.S. stocks, as they weigh the potential benefits
of regulatory rollbacks under President Donald Trump against the
possibility of protectionist policies, which some have said could
crimp corporate growth. Mr. Trump on Thursday sent Twitter messages
putting pressure on Mexico to pay for a wall he wants built on the
border.
The Mexican peso slid, with the dollar recently up 0.8% against
the currency. Mexican President Enrique Peña Nieto canceled a
planned meeting with Mr. Trump.
"This quarter is going to be bumpy," said Rick Anderson, chief
investment officer of Chicago-based Hull Investments, who said his
firm kept cash on the sidelines this week to guard against
potential stock swings.
The dollar and government bonds rose, and gold, a haven asset,
fell. The WSJ Dollar Index, which tracks the dollar against a
basket of 16 other currencies, was recently up 0.5%, coming off its
second lowest close of the year. The yield on the 10-year U.S.
Treasury note fell to 2.508% from 2.523% Wednesday, according to
Tradeweb. Bond yields fall as prices rise.
Gold fell 0.7% to $1,189.50 an ounce, notching its third
consecutive session of declines. Investor appetite for the metal --
which tends to rise when market uncertainty rises -- has diminished
in recent sessions as risk assets like stocks have gained.
Elsewhere, the Stoxx Europe 600 gained 0.2%, helped by the tech
and real-estate sectors. Japan's Nikkei Stock Average rose 1.8% and
Hong Kong's Hang Seng Index advanced 1.4% -- its biggest one-day
gain since Nov. 10.
Markets in China, South Korea, Taiwan and Vietnam will be closed
Friday, with China closed through next Thursday, due to the Lunar
New Year holiday.
Write to Akane Otani at akane.otani@wsj.com and Georgi Kantchev
at georgi.kantchev@wsj.com
(END) Dow Jones Newswires
January 26, 2017 15:27 ET (20:27 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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