Dow Ends At Record, Nasdaq Falls As Stocks Finish Mixed
Posted Tuesday, October 2, 2018 - 1:54 pm
The Dow pushed to a fresh record on Tuesday, while the Nasdaq retreated as lingering worries about the US-China trade conflict offset a trade breakthrough among North American nations.
At the closing bell, the Dow Jones Industrial Average was at 26,773.94, up 0.5 percent and about 30 points above the record set September 21.
The broad-based S&P 500 ended down less than 0.1 percent at 2,923.43, while the tech-rich Nasdaq Composite Index dropped 0.5 percent to 7,999.55.
The split movement came a day after President Donald Trump declared victory in a rewrite of the North American Free Trade Agreement following a deal with Canada. However, trade relations between the United States and China remain tense.
“There’s still enough uncertainty on the trade issue” to worry investors, said Nate Thooft, senior managing director at Manulife Mutual Funds.
“You still have a lot of concerns about the China situation and how long it can continue,” he added.
Art Hogan, chief market strategist at B. Riley FBR, said the Nasdaq was vulnerable because of uncertainty in some segments, including social media stocks and some semiconductor companies.
Amazon fell 1.7 percent after announcing it would lift its minimum wage for US workers to $15 per hour, addressing longstanding criticism that the company has underpaid staff.
Tesla Motors fell 3.1 percent after reporting it had met key production targets for its Model 3 sedan in the third quarter even as it warned that the US-China trade conflict weighed on performance. Tesla surged more than 17 percent on Monday following a settlement between US securities regulators and chief executive Elon Musk.
General Motors lost 2.6 percent and Ford 1.3 percent after both companies reported lower auto sales compared to the year-ago period, when sales were boosted by a surge in demand for replacement vehicles after Hurricane Harvey.
General Electric rose for a second straight day, this time by 1.9 percent on optimism over the appointment of new Chief Executive H. Lawrence Culp. But S&P downgraded the industrial giant, citing the weak performance in its power division.
© Agence France-Presse