June 5, 2018 / 2:42 PM / a year ago

US STOCKS-FAANG propels Nasdaq to record high, broader markets flat

* Twitter jumps on addition to S&P 500 index

* Nasdaq hits record high

* Financials, energy lag on S&P

* Dow up 0.07 pct, S&P up 0.18 pct, Nasdaq up 0.46 pct (Updates to open)

By Medha Singh

June 5 (Reuters) - Strong gains in tech heavyweights lifted the Nasdaq to a record intra-day high on Tuesday, while declines in financial and energy stocks weighed on the S&P 500 and Dow.

The so-called FAANG stocks — Facebook, Amazon , Apple, Netflix and Alphabet — rose between 0.5 percent and 1.7 percent, helping the S&P technology index rise 0.5 percent.

However, investors were still wary about trade discussions and equity index futures pared gains earlier after White House economic adviser Larry Kudlow said President Donald Trump may seek separate talks with Canada and Mexico in a bid to get individual trade deals with the two countries.

“The market is a little bit on edge when it comes to trade talks,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.

A relentless rally in stocks last year, that sent the main U.S. indexes to record highs almost every other week, came to a halt in late January on issues ranging from rising interest rates, trade concerns to geopolitical issues.

However, strength in the U.S. economy, as shown by the latest jobs report, helped investors shift their focus back to fundamentals.

“The carry-over from Friday, with the strong employment report, is a fact that a lot of people have been light on their equity holdings and they’re using this report as a reason to get back.”

At 10:07 a.m. EDT the Dow Jones Industrial Average was up 18.06 points, or 0.07 percent, at 24,831.75, the S&P 500 was up 4.98 points, or 0.18 percent, at 2,751.85 and the Nasdaq Composite was up 34.94 points, or 0.46 percent, at 7,641.40.

S&P financials were the biggest percentage decliners with Bank of America, JPMorgan and Goldman Sachs falling more than 0.5 percent.

Another drag was energy companies which fell as oil prices hit the lowest in nearly a month following a report that the U.S. government had asked Saudi Arabia and other major exporters to increase oil output.

The S&P energy index fell 0.6 percent.

Mexico is set to impose a 20 percent tariff on U.S. pork imports, sources told Reuters, in response to Trump’s tariffs on steel and aluminum levied last week.

Later this week Canada plays host to the G7 summit with six of the seven members outraged at the United States over a slew of recent moves by Trump.

Twitter gained 5.1 percent on the social network’s inclusion in the benchmark S&P 500 index. Netflix, which is set to join the S&P 100, rose 1.7 percent.

Advancing issues outnumbered decliners for a 1.40-to-1 ratio on the NYSE and for a 2.07-to-1 ratio on the Nasdaq.

The S&P index recorded 38 new 52-week highs and seven new lows, while the Nasdaq recorded 159 new highs and 16 new lows. (Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below