Banks push Dow to hit peak; technology stocks drag S&P 500 and Nasdaq down Reuters

© Reuters. File photo: Traders work on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, USA on December 28, 2021. REUTERS/Andrew Kelly

Authors: Shreyashi Sanyal and Devik Jain

(Reuters)-The Dow Jones Industrial Average hit a record high on Tuesday, boosted by banking and industrial stocks, as concerns about the Omicron variant of the new coronavirus subsided, while heavyweight technology stocks fell dragged down the Dow and Nasdaq The index went lower.

The Standard & Poor’s 500 Index also hit a record intraday high before it fell, because the World Health Organization stated that there is increasing evidence that the new coronavirus variants cause less symptoms than the previous variants. [MKTS/GLOB]

Seven of S&P’s 11 major sectors rose. Value-oriented and cyclical stocks such as energy and finance led the gains, rising 3.5% and 2.7%, respectively. Technology sector underperformed, down 1.6%

“We do know that the seasonality of the first few days of the new year will bring in new funds. There are several intermittent steps here and some decisions need to be made in rebalancing the portfolio,” said Art Hogan, chief market strategist. New York State Securities.

“Although we know that (Omicron) spreads very fast, the symptoms seem to be far less severe. The combination of these two things gives us some hope that it may burn faster than any other variant we have seen. Exhausted.”

Travel stocks rose, the S&P 1500 airline index rose 1.5%, cruise operator Norwegian Cruise Line (NYSE:) Holdings, Royal Caribbean (NYSE:) and Carnival (NYSE:) shares rose 1.1% to 2%.

The S&P 500 index banking sector rose 3.7%, while the broader value index rose 1.2%, a record high.

Robert Pavlik, senior portfolio manager at Dakota Wealth Management, said that value trading may lead the market in the first half of this year due to expectations that the Federal Reserve will raise interest rates.

The U.S. central bank said last month that it would end its bond purchases during the pandemic in 2022, suggesting that it will raise interest rates at least three times this year. The minutes of the meeting are expected to be released on Wednesday.

Ford Motor (NYSE:) Co shares rose 11.1% after the automaker said that the annual production capacity of its popular F-150 Lightning electric pickup truck will double to 150,000 units.

General Electric (NYSE:) Co up 2.9% Credit Suisse (6:) Upgrading the group’s stock from “neutral” to “outperforming the market.”

Locker (NYSE:) Inc fell 3.1% after JPMorgan Chase downgraded the sports footwear retailer’s stock rating from “neutral” to “underweight”.

At 12:00 PM Eastern Time, the index rose 247.62 points, or 0.68%, to 36,832.68, and the S&P 500 index fell 4.02 points, or 0.08%, to 4,792.54.

Affected by the decline in Amazon’s (NASDAQ:) stock price, the index fell 258.67 points, or 1.63%, to 15,574.13. Microsoft Corporation (NASDAQ:), Nvidia (NASDAQ:) and Tesla (NASDAQ:).

The data showed that the US manufacturing industry slowed down in December due to a cooling in commodity demand, but investors were comforted by signs of easing supply constraints.

On the New York Stock Exchange, the ratio of rising stocks to falling stocks is 1.30 to 1. On the Nasdaq, the number of stocks that have fallen exceeds the number of stocks that have risen, with a ratio of 1.51:1.

The S&P index hit 66 52-week highs and 1 new low, while the Nasdaq index hit 81 new highs and 60 new lows.

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