Dow edges to record, but Nasdaq winning streak ends

Dow edges to record, but Nasdaq winning streak ends

Traders work on the floor at the NYSE in New York
Traders work on the floor at the New York Stock Exchange (NYSE) in New York on Dec 17, 2019. (Photo: REUTERS/Brendan McDermid)

NEW YORK: The Dow finished at a fresh record on Friday (Dec 27) following a sleepy session, but the Nasdaq declined, ending a streak of 10 straight records.

The tech-rich Nasdaq Composite Index finished down 15.77 points (0.17 per cent) at 9,006.62.

But the Dow Jones Industrial Average climbed 23.87 points (0.08 per cent) to 28,645.26, its second straight record. The broad-based S&P 500 ended essentially unchanged at 3,240.02.

Analysts have attributed the latest run of records to upbeat investor sentiment based on a lower risk of recession in the immediate future, a mellowing of US-China trade tensions and accommodative monetary policy.

Stocks have followed a nearly unbroken line upward since early October, drifting higher much of this week amid low trading volumes in the period between the Christmas and New Year's holidays.

"It's a market that's gotten used to the fact that a lot of the things that were concerning last year feel better this year," said Art Hogan, chief market strategist at National Securities.

Still, some market watchers expect a pullback in the foreseeable future in light of the market's nearly unbroken run higher. Stocks have risen to higher-than-normal valuations as a result of the run.

Analysts say such a retreat would be natural due to technical trading factors, although it could also be sparked by an unexpected negative news event, such as a sharpening of US-China trade tensions.

Among individual companies, The Michaels Companies surged 32.9 per cent as it announced that Walmart e-commerce executive Ashley Buchanan would join the arts, crafts and framing retailer as chief executive in January.

Source: AFP/ec

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