S&P 500, Nasdaq close at record highs on trade, vaccine developments
By Stephen Culp NEW YORK (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic. The Dow, which has yet to reclaim its February high, ended the session lower.
By Stephen Culp
NEW YORK (Reuters) - The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, but a drop in Apple stock capped gains from positive developments in U.S.-China trade and fresh progress in the medical battle against the coronavirus pandemic.
The Dow, which has yet to reclaim its February high, ended the session lower.
That split, which will reduce Apple's weight in the Dow, prompted a reshuffle in the blue-chip industrial average, with Salesforce.com
"These changes reflect what has occurred in the overall business environment," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.
"But if (the Dow) were a portfolio drafted by a portfolio manager, the client would have fired the portfolio manager," Pavlik added.
Trade officials in Washington and Beijing reaffirmed their commitment to Phase One of a bilateral trade deal, but goodwill between the countries soured as China called a U.S. spy plane's flight through a no-fly zone a "naked provocation."
British drugmaker AstraZeneca
Later in the week the Kansas City Fed will convene its virtual Jackson Hole Economic Policy Symposium, with U.S. Federal Reserve Chairman Jerome Powell expected to speak.
On the economics front, the Conference Board's Consumer Confidence index plunged to a 6-year low this month, while a report from the Commerce Department showed sales of new homes in July surged to a more than 13-1/2-year high.
"You have this dichotomy between what's happening in the stock market and the economy," Pavlik said. "They're moving away from each other."
"Wall Street believes in a year from now the economy is going to improve and it's positioning itself to what it anticipates six months to a year from now."
Unofficially, the Dow Jones Industrial Average <.DJI> fell 59.71 points, or 0.21%, to 28,248.75, the S&P 500 <.SPX> gained 12.39 points, or 0.36%, to 3,443.67 and the Nasdaq Composite <.IXIC> added 86.75 points, or 0.76%, to 11,466.47.
Of the major sectors in the S&P 500, communications services <.SPLRCL> enjoyed the largest percentage gain, with energy <.SPNY> falling the most.
Shares of American Airlines Group Inc
Electronics chain Best Buy Inc
(Reporting by Stephen Culp; Editing by Cynthia Osterman)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
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