Dow’s 100th record close since Election Day

Marco Green
September 22, 2018

Data from the Labor Department showed US weekly jobless claims unexpectedly fell last week, hitting a near 49-year-low in a sign the job market remains strong.

Even more positively, the recent highs have been made with the vaunted FAANG names largely off their 52-week high, with Facebook (FB) and Netflix (NFLX) notably below record levels hit earlier this year.

The S&P 500 closed at a record for the 89th time Thursday since the election, and numerous S&P 500 component stocks set records. The S&P 500 closed at 2,929.67 for a loss of -1.08 points or -0.04%. The Nasdaq lost ground on the week.

The S&P 500, a benchmark for many index funds, also beat the all-time high it set last month.

"There's a long going on", said Tim Ghriskey, chief investment strategist at Inverness Counsel in NY. "But there's a lot going on". -China trade dispute on the big industrial companies that are part of the Dow. The sector led the Dow's advance.

The U.S. Labor Department reported new claims for unemployment benefits fell last week to a near-49-year low, confirming a strong labor market a week before the U.S. Federal Reserve is expected to raise interest rates.

The Dow Jones industrial average rose 251.22 points, or 1 per cent, to 26,656.98, its 12th record close of 2018 and a gain of 7.8 per cent on the year so far.

An afternoon sell-off erased modest gains for the S&P 500 that had the benchmark index on track to eke out its own record high for much of the day.

Nike Inc rose 1.2 percent after an analysis of the company's online sales data by Thomson Reuters Proprietary Research revealed it had sold out of 61 percent more merchandise since the appearance the ad campaign featuring National Football League player Colin Kaepernick. Southwest Airlines rose 2 percent to $63.77.

Under Armour Inc (UAA.N) gained 2.9 percent following an upgrade by JPMorgan Chase.

A 3.6 percent drop in shares of Micron led chipmakers lower after the company said USA tariffs on Chinese goods would weigh on its financial results for as much as a year.

Shares of Pier 1 Imports Inc (PIR.N) plunged 19.9 percent after the home furnishings retailer cut its second-quarter forecasts.

Advancing issues outnumbered declining ones on the NYSE by a 2.17-to-1 ratio; on Nasdaq, a 2.77-to-1 ratio favored advancers.

Reflecting the risk-on mood, the Nasdaq Composite and the S&P 500 were also adding 0.85% and 0.65%, respectively, as of writing.

Volume on USA exchanges was 10.77 billion shares, almost 64 per cent higher than the 6.57 billion average over the last 20 trading days.

Other reports by Click Lancashire

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