Dow edges to record but tech selloff hits Nasdaq

Dow edges to record but tech selloff hits Nasdaq

Traders work on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

NEW YORK: The Dow edged to a fresh record on Thursday (Sep 14), while the S&P 500 and Nasdaq pulled back from all-time peaks as industrial and technology shares moved in opposite directions.

Analysts described the stock movements as indicative of bets shifting away from tech high-flyers to sectors that have not done as well.

Apple, Facebook and Google-parent Alphabet all lost around one per cent, while Boeing, United Technologies and General Motors climbed at least one per cent.

The Dow Jones Industrial Average rose 45.30 points (0.20 per cent) to end the session at 22,203.48, its third straight record.

But the broad-based S&P 500 lost 2.75 points (0.11 per cent) to close at 2,495.62, and the tech-rich Nasdaq Composite Index shed 31.10 points (0.48 per cent) to 6,429.08.

Meanwhile, analysts said solid US economic data kept alive the chances of a third Federal Reserve interest rate hike in 2017.

The Consumer Price Index, which tracks the cost of household goods and services, jumped 0.4 per cent in August, its biggest increase since January and a tenth of a point higher than the consensus forecast.

In addition, new US jobless claims fell to 284,000, seasonally-adjusted, in the latest week, far below the analyst consensus for an increase to 310,000 due to the impact of Hurricane Harvey. That storm, and the more recent Hurricane Irma are expected to lead to a spike in claims for unemployment insurance in coming weeks.

Tesla Motors rose 3.1 per cent after chief executive Elon Musk announced the electric car maker would unveil a heavy transport truck next month. The launch is tentatively slated for Oct 26.

Tenet Healthcare rose 5.7 per cent after the Wall Street Journal reported the hospital company was exploring a possible sale.

Credit bureau Equifax slumped another 2.4 per cent as the Federal Trade Commission said it has begun an investigation into a data breach that may have leaked sensitive information on 143 million people. It has lost about 32 per cent of its stock value since disclosing the breach last week.

Source: AFP/de