MARKET SNAPSHOT: Dow Notches Best Record-setting Streak In 30 Years
February 23 2017 - 4:13AM
Dow Jones News
By Sue Chang and Anora Mahmudova, MarketWatch
Fed minutes indicate more comfort with a near-term rate hike
The Dow on Wednesday eked out a slight gain to log its best
record-setting streak in three decades, but the broader equity
benchmarks struggled as Federal Reserve minutes implied that the
central bank is comfortable with raising interest rates "fairly
soon."
The Dow Jones Industrial Average added 32.60 points, or 0.2%, to
end at 20,775.60--the ninth record close in a row, its longest run
since 1987, according to the Dow Jones data.
The S&P 500 index declined 2.56 points, or 0.1%, to finish
at 2,362.82, dragged down by energy shares which fell 1.6% as oil
prices tumbled.
The Nasdaq Composite Index shed 5.32 points to end at
5,860.63.
"A rate increase in March is most likely on the table even
though the minutes don't necessarily indicate that and it seems the
Fed is prepping the market for it," said Bob Pavlik, chief market
strategist at Boston Private Wealth.
"Many" Federal Reserve officials indicated their support for
raising rates if the economy continued to strengthen, according to
the minutes of the Fed meeting earlier this month
(http://www.marketwatch.com/story/fed-minutes-many-on-fed-back-interest-rate-hike-fairly-soon-if-economy-stays-on-course-or-strengthens-2017-02-22).
But the transcript also showed a mood of uncertainty over President
Donald Trump's fiscal policy plans, which have been the biggest
boost to stocks during the past few months.
The risks facing the U.S. economy are more in balance, allowing
the Fed to gradually raise interest rates
(http://www.marketwatch.com/story/feds-powell-says-risks-facing-economy-are-now-more-in-balance-2017-02-22),
said Gov. Jerome Powell to the Forecaster's Club of New York.
Meanwhile, some analysts warned that the rally on Wall Street
and overly complacent attitude among investors are creating a
dangerous situation.
"Make no mistake, lowering taxes is truly pro-growth and will
keep the strong undertone of growth moving ahead. This will,
however, mean a tighter monetary policy. Although we recognize that
rates are below normal, the fact is that when the tightening
process begins, the 'full speed ahead' of climbing stocks will run
into a brick wall," said Peter Cardillo, chief market economist at
First Standard Financial, in emailed notes.
Opinion:Market timing is out of favor--so is a stock-market top
near?
(http://www.marketwatch.com/story/market-timing-is-out-of-favor-so-is-a-stock-market-top-near-2017-02-21)
(http://projects.marketwatch.com/2017/trump-today-signup/)
Stock movers: Shares of Toll Brothers Inc.(TOL) jumped 6.1%
after posting a fall in profit and revenue, but rising contracts in
five of its markets
(http://www.marketwatch.com/story/toll-brothers-profit-and-revenue-fall-2017-02-22).
Dish Network Corp.(DISH) shares fell 0.7%, reversing gains that
followed news that the company swung to a profit on an increase in
subscribers.
Garmin Ltd.(GRMN) earnings results in the latest quarters came
in much better than expected, sending shares up 7.3%. The stock is
up 32% over the past 12 months.
First Solar Inc.(FSLR) shares dropped 8.4% as the solar-panel
maker reported that it swung to a loss on restructuring
charges.
Shares of Bristol-Myers Squibb Co.(BMY) rose 1% after news late
Tuesday that Carl Icahn has taken a stake in the New York
drugmaker. Icahn, who owns a large stake, believes the company's
pipeline of drugs would make it an attractive takeover candidate,
according to The Wall Street Journal
(http://www.marketwatch.com/story/carl-icahn-swoops-in-takes-stake-in-bristol-myers-squibb-2017-02-21).
Other markets: Asian markets mostly rose
(http://www.marketwatch.com/story/asian-stocks-edge-up-ahead-of-fed-minutes-2017-02-21)
with the Hong Kong Hang Seng Index up 1%. European stocks eased
across the board
(http://www.marketwatch.com/story/european-stocks-at-yearly-highs-as-euro-pulls-back-german-sentiment-rises-2017-02-22).
The 10-year Treasury yield fell 1 basis point to 2.41%. The
dollar gained against the euro , but slipped against the yen. Gold
prices settled lower.
--Barbara Kollmeyer contributed to this article.
(END) Dow Jones Newswires
February 23, 2017 03:58 ET (08:58 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.