S&P 500 Ekes Out Record High Thursday 11/14 16:24
A day of listless trading on Wall Street ended Thursday with another record
high for the S&P 500.
(AP) -- A day of listless trading on Wall Street ended Thursday with
another record high for the S&P 500.
The benchmark index notched its third consecutive gain after spending most
of the day wavering between small gains and losses. The Dow Jones Industrial
Average and Nasdaq composite also budged little, capping the day with miniscule
The market's lethargic turn came on a day with little market-moving news.
Investors were still awaiting more details on the status of trade talks between
the U.S. and China.
Published reports have suggested this week that negotiations between the
world's two largest economies have hit some snags. Beijing is pressing
Washington to roll back tariffs as part of a potential deal that the nations
are trying to hammer out.
While the market has been sensitive to the swings in the trade talks, the
latest speculation did not put most investors in a selling mood.
"We've had headlines like this before and the market is doing a little bit
better job of looking through them," said Sameer Samana, senior global market
strategist at Wells Fargo Investment Institute. "Until something is announced,
yay or nay, it probably doesn't make much sense to trade on it, especially when
President Trump himself has tweeted out that talks are going well."
The S&P 500 rose 2.59 points, or 0.1%, to 3,096.63. The Dow slipped 1.63
points, or less than 0.1%, to 27,781.96. The index had briefly been down around
The Nasdaq fell 3.08 points, or less than 0.1%, to 8,479.02. The Russell
2000 index of smaller company stocks dropped 0.39 points, or less than 0.1%, to
The broader market has been gaining ground for weeks on hopes that the U.S.
and China can make progress in their latest push for a deal. Investors have
also been encouraged by surprisingly good corporate earnings and data showing
the economy is still growing solidly. And the Federal Reserve has helped,
lowering interest rates three times this year. The central bank has signaled
that it's done lowering rates, for now, unless the U.S. economy shows any major
signs of trouble.
"We've been going up, and the path of least resistance is probably higher,
but the question is what's going to take us there?" Samana said. "The Fed's on
hold. Earnings are out of the way, so probably the next thing the market will
look to is this trade issue that's still outstanding."
Investors hope that Washington and Beijing can come to some sort of an
agreement to avert new and potentially more damaging tariffs that are scheduled
to take effect in the middle of next month. Those new tariffs would hit some
popular consumer products, such as electronic devices, as well as everyday
goods. President Donald Trump has been dismissive about any change to tariffs
while negotiations continue.
China did make a goodwill gesture of sorts Thursday when it moved to lift a
four-year ban on U.S. poultry products. The move sent shares in processed food
companies higher. Tyson Foods rose 1.7%, Sanderson Farms gained 3.7% and
Pilgrim's Pride added 1.1%.
The U.S. is the world's second largest poultry exporter, with global exports
of poultry meat and products of $4.3 billion last year. The U.S. Department of
Agriculture estimates that more than $1 billion in poultry could be exported to
Consumer-focused stocks, including Target and Lowe's, were the best
performers Thursday, offsetting declines in technology and energy companies.
Technology stocks were the biggest losers. Cisco Systems fell 7.3% after
giving investors a surprisingly weak revenue forecast.
Banks also moved broadly lower. The yield on the 10-year Treasury fell to
1.82% from 1.87% late Wednesday. Lower bond yields hurt banks' ability to
charge more lucrative interest rates on mortgages and other loans.
Retailers and other companies that rely on consumer spending held up best.
Lowe's rose 1.5% and Target added 2.3%. Walmart, which had been solidly higher
earlier after reporting strong third-quarter results and raising its annual
profit expectations, fell 0.3%.
Dillard's jumped 14.2% after the department store operator surprised Wall
Street with a fiscal third-quarter profit and solid sales.
Industrial and communication services stocks also notched gains. Boeing rose
1.4% and Netflix climbed 2.3%.
Benchmark crude oil fell 35 cents to settle at $56.77 a barrel. Brent crude
oil, the international standard, dropped 9 cents to close at $62.28 a barrel.
Wholesale gasoline fell 2 cents to $1.62 per gallon. Heating oil climbed 1 cent
to $1.92 per gallon. Natural gas rose 5 cents to $2.65 per 1,000 cubic feet.
Gold rose $10.10 to $1,471.80 per ounce, silver rose 11 cents to $17.01 per
ounce and copper fell 2 cents to $2.62 per pound.
The dollar fell to 108.37 Japanese yen from 108.79 yen on Wednesday. The
euro strengthened to $1.1022 from $1.1002.
European markets closed broadly lower.