Tech propels Nasdaq to record; bank, health stocks weigh on S&P - Metro US

Tech propels Nasdaq to record; bank, health stocks weigh on S&P

By Medha Singh

By Medha Singh

(Reuters) – Strong gains in tech heavyweights lifted the Nasdaq to a record intra-day high on Tuesday, while declines in financial and healthcare stocks weighed on the S&P 500 and Dow.

The so-called FAANG stocks — Facebook, Amazon, Apple, Netflix and Alphabet — rose between 0.3 percent and 1.9 percent, helping the S&P technology index rise 0.3 percent.

The gains come after Nasdaq closed at a record high on Monday, adding to the upbeat sentiment since Friday’s job data.

However, investors were still wary about trade discussions after White House economic adviser Larry Kudlow said President Donald Trump may seek separate talks with Canada and Mexico in a bid to get individual trade deals with the two countries.

Mexico imposed wide-ranging tariffs on American products ranging from steel to pork and bourbon on Tuesday, responding to Trump’s metals tariffs.

Shares of U.S. food companies Kellogg and General Mills fell about 2 percent, while shares of AK Steel and US Steel also dropped 1.7 percent.

“We’re in a trading range, a lot of that has to do with the fatigue factor of investors trying to digest multiple macro news, ranging from Italian elections to tariff talks,” said Matt Lloyd, chief investment strategist at Advisors Asset Management in Monument, Colorado.

“With the fundamentals, everything that you see right now is better for the long term, but a lot of investors are cautious if this is going to continue.”

ISM’s non-manufacturing business activity index showed better-than-expected strength in May, supporting the view of solid domestic economic growth in the second quarter.

At 11:38 a.m. ET the Dow Jones Industrial Average was down 62.97 points, or 0.25 percent, at 24,750.72, the S&P 500 was down 2.50 points, or 0.09 percent, at 2,744.37 and the Nasdaq Composite was up 7.59 points, or 0.10 percent, at 7,614.05.

Bank of America, JPMorgan and Goldman Sachs dropped more than 0.5 percent, dragging the S&P financial index down more than 0.8 percent.

Amgen’s shares fell 2.9 percent and pulled the S&P healthcare index lower after Mylan got regulatory approval for a biosimilar.

Declining issues outnumbered advancers for a 1.02-to-1 ratio on the NYSE. Advancing issues outnumbered decliners for a 1.19-to-1 ratio on the Nasdaq.

The S&P index recorded 43 new 52-week highs and seven new lows, while the Nasdaq recorded 189 new highs and 23 new lows.

(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta)

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