Wall Street receded from record highs yesterday as a drop in healthcare stocks offset gains caused by higher oil prices and a strong jobs report.
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An early rally in USA crude oil prices evaporated, sending several oil and gas companies lower.
A rally to several all-time highs since late June has left the S&P 500 up almost seven per cent in 2016, with many investors concerned about stretched valuations. Exxon Mobil’s 1.5 percent drop was the top drag on the S&P 500 and the Dow.
Seven of the 10 major S&P 500 indexes were higher, led by a 0.28 percent rise in the materials sector (.SPLRCM). At session-highs, the NASDAQ peaked at 5,238.54, hitting an all-time intraday high for the second time in three sessions.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday.
The dollar index fell for the second straight day as weak US productivity data on Tuesday somewhat dimmed the prospects of economic growth and would likely deter the Federal reserve from raising interest rates.
At 15:04 GMT (8:34 p.m.in India), on Tuesday, the Dow Jones Industrial Average was up 49.2 points, or 0.27 per cent, at 18,578.49.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.1 percent having already risen for three sessions in a row. The Nasdaq Composite Index decreased 0.1% after also reaching a record for the first time in a year.
Shares of Walt Disney DIS.N rose 1.52 percent after the company reported results overnight and bought a 33 percent stake in video-streaming firm BAMTech. It was the strongest contributor to the S&P 500’s loss.
Valeant rose 7.3 per cent to US$24.12 premarket after the company maintained its full-year forecast and announced strategic changes to its business.
A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets.
Microchip Tech soared 9.4 per cent to US$61.980 after the company’s first-quarter revenue beat analysts’ estimate.
The biggest gainer on the NASDAQ was Liberty Ventures (NASDAQ:LVNTA), which added 1.32 or 3.59 or 37.96.
Declining issues outnumbered advancing ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 2.02-to-1 ratio favored decliners. Bristol-Myers fell for the second straight day, shedding 4.71% after it said on Friday its lung-cancer drug failed a key late-stage study.
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U.S. stocks traded mostly lower on Monday, with the S&P 500 and Nasdaq Composite easing off record highs ahead of a deluge of economic data later in the week.
