US stocks end on a mixed note

Merck and Exxon Mobil dragged on the Dow

US stocks ended Tuesday's session on a mixed note on 10 January 2017. The Nasdaq finished out front, followed by the S&P 500 unchanged and the Dow with losses. Today's session got off to a flat start after some retailers and restaurants issued disappointing guidance. The Nasdaq Composite notched its fourth record close in a row Tuesday, representing the longest stretch of record closes for the tech-heavy index since 1999.

Fresh all-time highs for the Nasdaq came as the Dow industrials failed to reach the psychologically significant level of 20,000 again, amid otherwise tepid enthusiasm for equities ahead of a news conference from President-elect Donald Trump set for Wednesdayhis first since being elected on 8 November 2016.

The Dow Jones Industrial Average which had traded up by as many as 70 points and within 43 of breaching the 20,000 mark earlier in the session, closed down 31.85 points, or 0.2%, at 19,855.53. But the Nasdaq Composite Index shined, finishing up 20.00 points, or 0.4%, at 5,551.82, for the sixth straight day in the green. Meanwhile, The S&P 500 index ended at its flattest level in years, unchanged from Monday at 2,268.90. The broad-market gauge had been up by as many as 10 points earlier in the session.

Five of the 11 main sectors closed lower, led by a decline in the real-estate sector and a gain in consumer-discretionary stocks. Shares of Merck and Exxon Mobil dragged on the benchmark.

Market participants are awaiting the kick off earnings season for some support for the recent rally in U.S. stocks.

Some of evidence of pre-Trump news conference jitters were on display in the dollar which pulled back somewhat on Wednesday. The greenback was up about 0.1% against major currencies. The dollar has been rising on hopes that the new administration's fiscal stimulus will boost the economy, but some traders believe that bet may have been pushed too far, too fast.

Economic data at Wall Street showed that November Wholesale Inventories increased 1.0%, which was above the consensus of 0.9%. The prior month's reading was revised to -0.1% from -0.4%.

Separately, November Job Openings and Labor Turnover Survey showed that job openings decreased to 5.198 million from a revised 5.451 million (from 5.534 million) in October.

Bullion metals pared early gains by Tuesday's settlement as the dollar strengthened on 10 January 2017, but uncertainty a day ahead of a scheduled press conference by President-elect Donald Trump helped lift the precious metal to its highest finish in six weeks.

Gold for February delivery tacked on 60 cents, or less than 0.1%, to settle at $1,185.50 an ounce. Prices touched a high above $1,190 during the session. Silver for March delivery added 16.5 cents, or 1%, to $16.848 an ounce after climbing 1% Monday.

Oil prices fell sharply on Tuesday, 10 January 2016 to finish the session at their lowest level in nearly five weeks, weighed by worries about an increase in U.S. production and doubts that global producers will comply with a sweeping agreement to curb output.

On the New York Mercantile Exchange, February West Texas Intermediate crude fell by $1.14, or 2.2%, to settle at $50.82 a barrel. March Brent crude on London's ICE Futures exchange dropped $1.30, or 2.4%, to $53.64 a barrel.

With the Organization of the Petroleum Exporting Countries-led pact in effect for less than a month, many market participants have been unsure whether the agreement will be carried out and if participating producers will comply with their allotted quota.

The Treasury market remained relatively flat throughout today's session. The 2-yr yield closed unchanged at 1.19%, while the 10-yr yield finished up one basis point at 2.38%.

Today's trading volume finished above the 50-day moving average as 1.17 billion shares changed hands at the NYSE floor.

Tomorrow's lone economic report is the MBA Mortgage Applications Index, which will be released at 7:00 ET.

Powered by Capital Market - Live News