U.S. Stocks Stabilize After Selloff
September 26 2017 - 5:33PM
Dow Jones News
By Michael Wursthorn
Resurgent shares of technology companies helped the Nasdaq
Composite eke out a gain Tuesday.
Even with tech's rise, however, eight of the 11 major S&P
500 sectors closed lower, leaving the broad index little changed,
while the Dow Jones Industrial Average slipped less than a
percentage point.
The stabilization came a day after tensions flared between the
U.S. and North Korea, contributing to declines in U.S. stocks. Some
analysts attributed tech's rebound Tuesday to investors taking
advantage of the sector's decline a day earlier.
Shares of tech companies have been big contributors to this
year's gains in the U.S. stock market.
"Investors are looking to pick up things that have fallen down a
little bit," said Chris Wolfe, chief investment officer at First
Republic Bank's wealth-management arm. With bond yields still
relatively low, "you get into a place where equities are the only
game in town," he added.
The tech-heavy Nasdaq Composite rose 9.57 points, or 0.2%, to
6380.16, while the S&P 500 rose 0.18 point, or less than 0.1%,
to 2496.84.
The Dow industrials were in positive territory for much of the
session, but declined heading into the close. The blue-chip index
slipped 11.77 points, or less than 0.1%, to 22284.32, its fourth
straight session of declines and its longest losing streak since
June.
Apple, which has stumbled this month following the rollout of
its latest slate of iPhones and watches, was among the tech
sector's biggest gainers Tuesday. The company rose $2.59, or 1.7%,
to $153.14.
Software maker Red Hat gained 4.31, or 4.1%, to 110.07 after it
reported higher-than-expected profit and revenue for the latest
quarter, while data-storage firm NetApp rose 1.06, or 2.5%, to
43.76.
Without any new major geopolitical developments, investors
pulled back from assets they consider to be relatively safe.
Gold for September delivery fell 0.7% Tuesday, and the dollar
rose 0.5% against the Japanese yen, which tends to rise when
markets slide.
Still, some money managers said some clients have been nervous
following recent North Korea developments. The country's foreign
minister warned Monday it would shoot down U.S. warplanes even if
they were outside its airspace. White House officials dismissed
talk of war.
"A lot of our clients are concerned," said Eric Aanes, president
of Titus Wealth Management, an advisory firm located just outside
of San Rafael, Calif., with $500 million in assets under
management.
"We're getting to the point where there's a lot of confusion
where to put money."
The Stoxx Europe 600 was little changed. In Asia, South Korea's
Kospi closed down 0.3%, while Japan's Nikkei Stock Average also
fell 0.3%, with tech stocks under pressure.
Marina Force contributed to this article.
Write to Michael Wursthorn at Michael.Wursthorn@wsj.com
(END) Dow Jones Newswires
September 26, 2017 17:18 ET (21:18 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.