Trump rally sputters as energy, health stocks drag | Reuters
By Yashaswini Swamynathan A rally sparked by Donald Trump's surprise victory in the U.S. presidential election, that also powered the Dow to a record high, sputtered on Friday as energy and healthcare stocks came under pressure.
By Yashaswini Swamynathan
A rally sparked by Donald Trump's surprise victory in the U.S. presidential election, that also powered the Dow to a record high, sputtered on Friday as energy and healthcare stocks came under pressure. Investors scrambled to adjust their portfolios to benefit from Trump's plans to simplify regulation in the health and financial sectors and boost spending on infrastructure. The S&P 500 financial index has gained 7.2 percent, industrials 4.1 percent and healthcare 2.9 percent since the U.S. election on Tuesday, far outperforming other sectors.The S&P is on track to mark its best week since October 2014, despite the pull back on Friday."The market this week has been exceptionally strong and when you see a massive rally like this, it is perfectly normal to see some profit-taking," said Adam Sarhan, chief executive of 50 Park Investments. "The market has earned the right to pause a little bit to digest that move."
Oil prices fell more than 3 percent as the market refocused on a persistent supply overhang that is not expected to abate unless OPEC and other producers cut their output significantly. [O/R].Eight of the 11 major S&P 500 sectors were lower, with declines in energy and health being the steepest. At 11:06 a.m. ET the Dow Jones industrial average was down 41.78 points, or 0.22 percent, at 18,766.1.
The S&P 500 was down 11.23 points, or 0.52 percent, at 2,156.25 and the Nasdaq Composite was down 10.92 points, or 0.21 percent, at 5,197.88.Federal Reserve Vice Chairman Stanley Fischer said on Friday economic growth prospects appear strong enough for a gradual hike in interest rates, but the central bank is monitoring an increase in long-term U.S. government borrowing costs.U.S. bond markets are closed for Veteran's Day on Friday. But the 10-year Treasury yield has hit its highest levels in 10 months already this week.
Nvidia shares jumped 24.3 percent after the graphic chipmaker reported its biggest quarterly revenue growth in more than six years. Walt Disney rose 2.5 percent to $97.31 after its executives promised earnings growth for the next two years. Barclays also upgraded the media company's stock to "equal weight" from "underweight".Declining issues outnumbered advancing ones on the NYSE by 1,693 to 1,219. On the Nasdaq, 1,606 issues rose and 1,022 fell.The S&P 500 index showed 22 new 52-week highs and six new lows, while the Nasdaq recorded 206 new highs and 25 new lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)
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