<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=192888919167017&amp;ev=PageView&amp;noscript=1">
Thursday, March 28, 2024
March 28, 2024

Linkedin Pinterest

Nasdaq ekes out another record

By ALEX VEIGA, Associated Press
Published: September 7, 2016, 5:08pm

Even on a day when the major U.S. stock indexes barely budged, the market met another milestone.

The Nasdaq composite eked out a gain, pushing the tech-heavy index to its second record-high close in a row. The Dow Jones industrial average and Standard & Poor’s 500 index drifted in the opposite direction, closing slightly in the red.

Supermarket chains and other consumer-focused companies were among the biggest decliners. Traders bid up shares in energy, technology and airline companies. Crude oil prices rose.

New figures on job openings and a report used by the Federal Reserve to gauge the health of businesses did little to move the market, which has been in a wait-and-see mode as investors gauge the likelihood of further intervention by the Fed.

“We get a favorable data point and shortly thereafter we get one that suggests we’re still in a very low-growth environment,” said Eric Wiegand, senior portfolio manager at the Private Client Reserve at U.S. Bank. “We’re not seeing tremendous volume or tremendous conviction …from either sellers or buyers.”

The Dow dropped 11.98 points, or 0.1 percent, to 18,526.14. The S&P 500 index slipped 0.32 points, or 0.01 percent, to 2,186.16. The Nasdaq gained 8.02 points, or 0.2 percent, to 5,283.93.

A run of weak U.S. economic data has reduced expectations that the Federal Reserve will raise interest rates again soon, which would be a potential boon for stocks. However, if the central bank opts to hold off on a rate increase, it could suggest expectations of sluggish economic growth and a dimmer outlook for corporate earnings, which is bad for stocks.

On Wednesday, investors got a mixed bag of economic news. The Fed’s latest “Beige Book” survey of business conditions indicated that the economy grew at a moderate or modest pace this summer in eight of the central bank’s 12 U.S. districts. The findings represent a slowdown from previous reports.

Separately, the Labor Department said job openings jumped 4 percent in July. Another government report last Friday showed that employers pulled back on hiring in August.

Shares in some supermarket operators slumped on worries about lower food prices and greater discounts. Whole Foods slid $1.62, or 5.3 percent, to $29.08, while Kroger lost $1.35, or 4.1 percent, to $31.32.

Benchmark U.S. crude oil futures rose 67 cents, or 1.5 percent, to close at $45.50 a barrel in New York. Brent crude, the benchmark for international oil prices, added 72 cents, or 1.5 percent, to close at $47.98 a barrel in London.

The pickup in crude prices gave energy stocks a boost. The sector eked out the biggest gain in the S&P 500 index, rising 0.3 percent. It’s up 15.5 percent this year.

Technology stocks also rose, led by digital storage drive manufacturer Western Digital. The stock jumped $5.75, or 12.1 percent, to $53.30. Seagate Technology added $2.04, or 5.9 percent, to $36.51.

Apple shares moved higher as the company announced new iPhone models. Analysts said the new iPhones could help Apple recover modestly from a recent dip in sales. The stock added 66 cents, or 0.6 percent, to $108.36.

Apple also announced that Nintendo’s “Super Mario Runs” game will be available on the iPhone. That news sent U.S.-traded shares in Nintendo up $8.12, or 28.8 percent, to $36.32.

Investors also bid up shares in several airlines. American Airlines Group rose $1.79, or 4.8 percent, to $38.75, while United Continental Holdings added $2.54, or 4.9 percent, to $53.68. Delta Air Lines rose $2.08, or 5.7 percent, to $38.90. Southwest Airlines climbed $1.73, or 4.7 percent, to $38.68.

Wholesale gasoline rose 3 cents to $1.35 a gallon. Heating oil added 2 cents to $1.43 a gallon. Natural gas slid 4 cents to $2.68 per 1,000 cubic feet.

Among metals, gold slid $4.80 to $1,349.20 an ounce, while silver fell 29 cents, or 1.4 percent, to $19.84 an ounce. Copper picked up 1 cent to $2.10 a pound.

Loading...