Dow, S&P 500 Reach New Record Highs Amid Light Trading - U.S. Commentary

(RTTNews) - After trending higher in recent sessions, stocks turned in a mixed performance during trading on Wednesday. The Dow and the S&P 500 reached new record closing highs, while the tech-heavy Nasdaq ended the day in the red.

While the Nasdaq edged down 5.67 points or 0.1 percent to 5,380.68, the Dow rose 59.31 points or 0.3 percent to 19,083.18 and the S&P 500 inched up 1.78 points or 0.1 percent to 2,204.72.

The mixed performance on Wall Street came as traders seem took a breather following the upward move seen over the past couple weeks.

The looming Thanksgiving Day holiday on Thursday also contributed to light trading activity, as some traders looked to get a head start on their vacations.

However, traders were presented with a slew of U.S. economic data, including a Commerce Department report showing a sharp jump in durable goods orders in the month of October.

The Commerce Department said durable goods orders surged up by 4.8 percent in October after rising by a revised 0.4 percent in September. Economists had expected orders to climb by 1.5 percent compared to the 0.3 percent drop that had been reported for the previous month.

The much bigger than expected increase in durable goods orders was partly due to a jump in orders for commercial aircraft and parts, which soared by 94.1 percent.

Meanwhile, a separate Commerce Department report showed that new home sales fell by much more than anticipated in October.

The report said new home sales slid 1.9 percent to an annual rate of 563,000 in October from the revised September rate of 574,000.

Economists had expected home sales to edge down by 0.5 percent to a rate of 590,000 from the 593,000 originally reported for the previous month.

The Labor Department also reported a rebound in weekly jobless claims, while the University of Michigan said its reading on consumer sentiment in November came in much higher than previously estimated.

Traders largely shrugged off the minutes of the Federal Reserve's latest monetary policy meeting, which said most Fed officials expect it to become appropriate to raise interest rates relatively soon.

The minutes noted that the expectation for a near-term rate hike is contingent on incoming data providing some further evidence of continued progress toward the Fed's objectives.

Some meeting participants argued that a rate hike should occur at the next meeting in December in order to preserve credibility following the committee's recent communications.

The Dow benefited from a notable advance by shares of Caterpillar (CAT), which moved higher amid upbeat earnings news from rival Deere (DE).

Sector News

Most of the major sectors ended the day showing only modest moves, although substantial weakness was visible among gold stocks. The NYSE Arca Gold Bugs Index plunged by 5.2 percent to a nearly eight-month closing low.

The weakness among gold stocks came amid a sharp drop by the price of the precious metal, with gold for December delivery tumbling $21.90 to $1,189.30 an ounce.

Significant weakness was also visible among electronic storage stocks, as reflected by the 1.8 percent drop by the NYSE Arca Disk Drive Index. The index gave back ground after ending the previous session at its best closing level in a year.

Nimble Storage (NMBL) posted a steep loss on the day after reporting a third quarter loss that was notably wider year-over-year.

On the other hand, natural gas stocks showed a strong move to the upside, driving the NYSE Arca Natural Gas Index up by 1.3 percent. With the gain the index reached its best closing level in well over a month.

Trucking, steel, and biotechnology stocks also saw some strength on the day, although buying interest was relatively subdued.

Other Markets

In overseas trading, stocks markets across the Asia-Pacific region turned in a mixed performance on Wednesday, with the Japanese markets closed for a holiday. China's Shanghai Composite Index edged down by 0.2 percent, while Australia's All Ordinaries Index jumped by 1.3 percent.

Meanwhile, the major European markets all moved to the downside on the day. While the U.K.'s FTSE 100 Index closed just below the unchanged, the French CAC 40 Index and the German DAX Index fell by 0.4 percent and 0.5 percent, respectively.

In the bond market, treasuries climbed well off their worst levels but still closed in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.6 basis points to 2.357 percent.

Looking Ahead

Following the holiday on Thursday, trading activity on Friday is likely to be relatively subdued, with the markets set to close earlier than usual.