Tech stocks recover as Dow reaches new record

Gladys Abbott
June 15, 2017

The Dow Jones Industrial Average gained 90 points, which helped it reach both intraday and closing records. The nearly immediate jump back from tech stocks also helped major Wall Street indexes pop.

In futures today, the Dow Jones is trading 39n ahead; the S&P 500 is up three points, while the Nasdaq gained 14.5.

The S&P 500 was down 1.67 points, or 0.07 per cent, at 2,438.68 and the Nasdaq Composite was up 3.90 points, or 0.06 per cent, at 6,224.27.

Johnson & Johnson rose 0.6 percent at $132.76 after the company's flu drug succeeded in a mid-stage trial.

Apple offered a $1 billion green bond created to promote financing clean energy projects. The stock provided the biggest boost to the S&P and the Dow. By comparison, health care - the second-best performer in the S&P - had risen 12.1 for 2017 entering Tuesday's session.

A survey of fund managers released Tuesday by Bank of America Merrill Lynch showed the Nasdaq at the top of the most-crowded trade list. United States stockpile data is also due out today. Gold futures and a key dollar index were little changed.

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"The Tech selloff looks almost complete in the short run with XLK. down to weekly support near trendlines from last November", he said. The chairwoman is expected to push back hard ( on the market's skepticism ( about the need for another rate hike this year.

According to's Fed Rate Monitor Tool, conviction for a move beyond this week's widely expected rate hike has faded, with just 40% of market players expecting another rate increase later this year.

The Fed clearly outlined a plan to reduce its US$4.2-trillion (RM17.89-trillion) portfolio of Treasury bonds and mortgage-backed securities, most of which were purchased in the wake of the 2007-2009 financial crisis and recession.

In economic news, the National Federation of Independent Business' (NFIB) small business optimism index came in unchanged at 104.5 for May. What does seem to be clear is the fact that the markets have demonstrated they can be hyper-resistant to large declines over the last few months. "On the former, a growing issue is the dearth of supply for qualified workers which we keep talking about", Boockvar said.

On the economic front, the Producer Price Index (PPI) for final demand was unchanged in May, seasonally adjusted, the U.S. Labor Department reported Tuesday.

-Reuters contributed to this report.

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