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Wall St. Closes Mostly Higher Wall St. Closes Mostly Higher
(about 3 hours later)
United States markets closed mostly higher on Thursday, with the Dow Jones industrial average beating its high set in August. Broader market measures were mixed Thursday as several sectors struggled, including consumer goods companies, utilities and phone companies. The market was following a big rally on Wednesday after the election of Donald J. Trump as the next president. Banks and other financial companies led stocks on Wall Street mostly higher on Thursday, propelling the Dow Jones industrial average to a record high.
KEEPING SCORE The Dow closed 1.2 percent higher, reaching 18,807.88 points. The broader Standard & Poor’s 500-stock index gained 0.2 percent. The Nasdaq composite index fell 0.8 percent. The Standard & Poor’s 500-stock index, a broader measure of the stock market, also eked out a gain, adding to a big rally the day before, after Donald J. Trump’s presidential election victory. The Nasdaq composite closed lower, weighed down by a slide in technology companies. Bond prices slumped again, sending yields higher.
TRUMP BOUNCE Mr. Trump’s election put many investors in a buying mood, giving many global stock indexes a lift early Thursday. Traders were focusing on Mr. Trump’s promises to bolster economic growth through infrastructure spending, rather than uncertainties such as what he might do with trade agreements. Before the election, markets were worried about a Trump presidency because his campaign promises carried few policy details, making him an unknown quantity compared with his rival, Hillary Clinton. “You are seeing a massive swing out of cash and fixed-income and into equities to take advantage of this pro-growth cycle that the market believes we’re beginning,” said David Lyon, global investment specialist at J. P. Morgan Private Bank.
THE QUOTE “We had a gangbuster day yesterday; call it a Trump rally,” said Doug Cote, chief market strategist for Voya Investment Management. “Today we’re having a little breather, a little rest, but the key thing that will also keep the market going is the S.&P. 500 corporate earnings for the third quarter are positive for the first time in six quarters.” The Dow climbed 218.19 points, or 1.2 percent, to 18,807.88. That’s a gain of about 1 percent from the average’s previous record high, reached on Aug. 15. The S.&P. 500 added 4.22 points, or 0.2 percent, to 2,167.48.
DROPPING THE PHONE Phone companies were trading lower, part of a sell-off in telecom and other safe-haven stocks. Shares of AT&T lost 2.3 percent, while Verizon Communications stock slid 2.4 percent. Shares of T-Mobile slid 1.6 percent. The Dow and the S.&P. 500 are on a four-day winning streak. The tech-heavy Nasdaq lost 42.28 points, or 0.8 percent, to 5,208.80.
TECH SLIDE Some big names in the technology industry were trading lower. Netflix stock slumped 5.5 percent, while shares of Amazon slid 3.8 percent. Microsoft stock fell 2.4 percent. Investors continued to make moves based on the bevy of policy changes that the Trump administration could put into effect when it takes over in January. Those include cutting taxes, increasing infrastructure spending and slashing government regulation of businesses.
MIXED RESULTS Shares of the biopharmaceutical company Novavax slumped 17.7 percent after the company reported third-quarter revenue that fell short of financial analysts’ forecasts. That has pushed financial, industrial and health care stocks higher, while prompting traders to sell consumer goods companies, utilities and phone companies. Investors have also continued to pull out of bonds in anticipation that Mr. Trump’s policies could usher in a stronger economy and, possibly, higher inflation, both of which are bad for bonds.
BANKS SURGE Shares of several big banks were moving higher among speculation that Mr. Trump’s administration could result in higher interest rates and less government regulation, which tend to benefit banks and other financial stocks. JPMorgan Chase stock climbed 4.6 percent, the highest gainer in the Dow. Goldman Sachs stock rose 4.3 percent. Wells Fargo gained 7.6 percent, while Discover Financial Services added 5.5 percent. The sell-off in bonds continued on Thursday, sending bond prices lower and kicking the yield on the 10-year Treasury note up to 2.14 percent, the highest it has been since January, from 2.07 percent on Wednesday. That yield is a benchmark used to set interest rates on many kinds of loans, including home mortgages.
BETTER QUARTER Shares of the department store chain Macy’s rose 5.6 percent after the company raised its sale outlook for the year, citing improved business in the third quarter. JPMorgan Chase led the 30 companies in the Dow, climbing $3.40, or 4.6 percent, to $76.65. It was followed by Goldman Sachs, which rose $8.24, or 4.3 percent, to $200.87.
BRIGHT OUTLOOK Shares of the retailer Kohl’s surged 11.5 percent after the company said it saw positive trends heading into the coming holiday shopping season. Traders also bid up shares in Macy’s and Kohl’s after the companies reported their latest quarterly results.
BONDS The sell-off in bonds continued, sending prices lower and kicking up the yield on the 10-year Treasury note to 2.10 percent from 2.06 percent late Wednesday. That yield is a benchmark used to set interest rates on many kinds of loans including home mortgages. Traders have been selling bonds more aggressively to hedge against the possibility that interest rates, which have been ultralow for years, could rise steadily again under Mr. Trump’s administration. Macy’s rose $2.15, or 5.6 percent, to $40.53. Kohl’s was the biggest gainer in the S.&P. 500, adding $5.27, or 11.5 percent, to $50.97.
EUROPEAN MARKETS In Germany, the DAX lost 0.1 percent, and in France, the CAC 40 sank 0.3 percent. The FTSE 100 was down 1.2 percent in Britain. Russia was one of the biggest gainers in Europe as optimism there grew that Mr. Trump’s election would improve relations. The Micex index in Moscow was up 2.3 percent. In European markets, Germany’s DAX slid 0.2 percent, while the CAC-40 in France fell 0.3 percent. Britain’s FTSE 100 lost 1.2 percent. Optimism that Mr. Trump’s election will improve relations between the United States and Russia helped lift the Micex index in Moscow 1.6 percent.
ASIAN MARKETS The results of the American election prompted widespread selling on Wednesday in Asia. On Thursday, Asian shares posted hefty gains as they responded to the optimism subsequently recorded in Europe and the United States. The Nikkei 225 rose 6.7 percent in Japan, while in Hong Kong, the Hang Seng gained 1.9 percent. The Shanghai composite index added 1.4 percent in China. The Kospi climbed 2.3 percent in South Korea. In Australia, the S.&P./ASX 200 gained 3.3 percent. Markets in Asia fared better. Japan’s benchmark Nikkei 225 index rocketed 6.7 percent after sliding more than 5 percent the day before. South Korea’s Kospi advanced 2.3 percent and the Hang Seng index in Hong Kong added 1.9 percent. Australia’s S.&P./ASX 200 surged 3.3 percent.
CURRENCIES One country keenly aware of potential problems ahead is Mexico. Mr. Trump repeatedly said he wanted a wall built to keep illegal Mexican immigrants out of the United States, and he has threatened to tear up the North American Free Trade Agreement. Crude oil prices declined. Benchmark United States crude fell 61 cents, or 1.3 percent, to close at $44.66 a barrel in New York. Brent crude, used to price international oils, lost 52 cents, or 1.1 percent, to close at $45.84 a barrel in London.
On Thursday, the Mexican peso recouped some losses after plunging against the dollar on Wednesday. The dollar weakened to 20.46 Mexican pesos, still near its lowest level in decades. In metals trading, the price of gold fell $7.10 to $1,265.50 an ounce, while silver added 36 cents, or 2 percent, to $18.74 an ounce. Copper rose 9 cents, or 3.7 percent, to $2.55 a pound.
In other currencies, the euro was down 0.2 percent at $1.0894, while the dollar rose 0.9 percent to 106.56 yen. In currency trading, the dollar continued to strengthen on Thursday.
ENERGY In oil markets, United States benchmark crude oil fell 52 cents, to $44.75 a barrel on the New York Mercantile Exchange while Brent crude, used to price international oils, dropped 46 cents, to $45.90 a barrel in London. The United States currency rose to 106.88 yen from 105.87 yen on Wednesday, while the euro slid to $1.0884 from $1.0909. The Mexican peso continued to weaken against the dollar.
One dollar bought 20.61 pesos on Thursday, more than the 19.87 pesos it bought late Wednesday. Investors worry that Mr. Trump’s anti-immigration stance and intention to repeal a trade pact with Mexico could hurt that country’s economy.