NASDAQ Hits New Intraday High
Stock prices took a pause Friday from their near-record levels on account of profit taking. Overall, the benchmark indexes gained for the second week in a row. The rally has been fueled by optimism that Donald Trump’s policies like lower tax rates, financial deregulation, and increased infrastructure spending will enhance economic growth.
The Dow Jones Industrial Average (DJIA) dropped about 36 points and closed at 18,867.93.
The NASDAQ Composite Index fell 12 points to close at 5,321.51. It had hit a new intraday all-time high of 5,346.80 after the market open, but failed to maintain the level.
The S&P 500 lost five points and closed at 2,181.90.
Healthcare stocks traded weakly, with Pfizer Inc. (NYSE:PFE) stock down about 0.8% and UnitedHealth Group Inc (NYSE:UNH) losing about 0.9%.
Both Procter & Gamble Co (NYSE:PG) and Merck & Co., Inc. (NYSE:MRK) lost about 1.3% and were the biggest losers in the Dow Jones Index.
Retailers were also in the limelight. Wal-Mart Stores, Inc. (NYSE:WMT) was down 0.9% and Nike Inc (NYSE:NKE) lost almost one percent.
However, Ross Stores, Inc. (NASDAQ:ROST) gained 3.8% after the retailer reported better-than-expected quarterly results. The same-store sales increased by seven percent, which is being attributed to its amazing in-store experience.
salesforce.com, inc. (NYSE:CRM), the cloud-computing company, posted strong numbers and raised its guidance. CRM stock gained about 3.4% and closed the session at $77.77.
Gap Inc (NYSE:GPS) plunged about 17% after the company reported an 18% drop in quarterly profit. Gap’s management also confirmed that it is facing challenges to attract more shoppers. The company’s sales continue to decline amid dismal outlook. GPS stock ended the session at $25.61.
Stock Market Today
The following are likely to be in the limelight in stock market news today.
Tyson Foods, Inc. (NYSE:TSN) is set to report its quarterly earnings before markets open and earnings growth is expected to be good.
Jack in the Box Inc. (NASDAQ:JACK), the restaurant company, will report its quarterly results after market hours.
With Donald Trump filling key posts in his administration, and the likelihood of Mitt Romney joining as Secretary of State, sentiments might turn a bit bullish. Economic data has also improved and investors are watching higher yields, as well as the strengthening dollar.
However, stocks have already risen and indexes are close to all-time highs, thereby leading to possibilities of a sell-off. The stock market today is likely to trade with a lower bias.