Published: Sun, September 23, 2018
Business | By Tara Barton

Dow hits new high ahead of index reshuffle

Dow hits new high ahead of index reshuffle

Technology stocks, however, handed back an early burst of gains after the opening bell, with traders pointing to fallout from the biggest reshuffle since 1999 of Wall Street's broad industry sectors as a driving factor.

The S&P 500 fell 1.08 points, or 0.04 per cent, to 2,929.67, Xinhua news agency reported. Eastern Time. The Dow Jones Industrial Average gained 72 points, or 0.3 percent, to 26,729.

The Nasdaq Composite Index decreased 41.28 points, or 0.51 per cent, to 7,986.96. The Russell 2000 index of smaller companies picked up 16 points, or 1 percent, to 1,719.

Coming off Thursday's record-setting rally, trading was listless for much of Friday. Among the biggest changes, Facebook and Google's parent Alphabet will move out of the tech into the telecom services sector. The sector will be renamed as communication services starting Monday. The chipmaker said Friday its profits would be hurt by new tariffs on Chinese imports that go into effect next week.

DOES NOT COMPUTE: Red Hat slid 7 percent to $133.17 after the open-source software company's sales disappointed investors.

The trade dispute between the USA and China is set to escalate Monday. The latest US tariff hike on Chinese goods in a dispute over Beijing's technology policy involves an additional 10 percent tax on $200 billion of Chinese imports.

PRECISION DEAL: Mazor Robotics surged 10.2 percent to $58.11 after the surgical guidance system maker agreed to be bought by Medtronic for $1.54 billion.

On other economic data, US building permits in August were at a seasonally adjusted annual rate of 1,229,000, 5.7 percent below the revised July rate of 1,303,000, the Department of Commerce reported on Wednesday. "The robustness of the economy just won't be put down". American Airlines Group climbed 4.1 percent to $43.60 after the company said it will raise fees for checked bags. Cardinal Health rose 2.7 percent to $55.38.

Cruz, O'Rourke debate in Dallas
They put their ideas forward effectively there were no major gaffs or stumbles so overall strong for both sides", Wilson said. Citing state and local police reports, the Houston Chronicle reported last month that a witness said he tried to flee.

Meanwhile, the Conference Board Leading Economic Index for the USA increased 0.4 percent in August to 111.2, following a 0.7-percent increase in July. Brent crude, used to price worldwide oils, was down 0.9 percent to $78.65.

The rise in crude oil prices sent many energy stocks higher.

METALS: Gold rose 0.2 percent to $1,211.30 an ounce.

BOND YIELDS: Bond prices rose. Bank shares got a boost as the 10-year Treasury note yield hit a record high of 3.09 percent during Wednesday's trading, the highest level since May.

CURRENCIES: The dollar rose to 112.51 yen from 112.27 yen on Wednesday. The euro edged down to $1.1747 from $1.1776. The British pound weakened to $1.3078 from $1.3268 after British Prime Minister Theresa May said talks over exiting the European Union are at an impasse. Silver gained 0.2 percent to $14.31 an ounce.

McDonald's 2 percent rise lifted the consumer discretionary sector after the company ended a week marked by strikes across the country over workplace sexual harassment by raising its quarterly dividend by 15 percent to $1.16.

HIT THE STORES: Retailers and other consumer-focused stocks also took solid gains. Germany's DAX added 0.8 percent, while France's CAC 40 rose 0.8 percent. Britain's FTSE 100 added 0.5 percent.

In Asia, markets closed mostly higher.

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