MARKET SNAPSHOT: S&P 500, Dow Hit Intraday Records, On Track For Weekly Gains
December 09 2016 - 10:04AM
Dow Jones News
By Anora Mahmudova and Sara Sjolin, MarketWatch
Some analysts warn a correction may be coming
U.S. stocks extended gains to a fifth consecutive session
Friday, with main benchmarks setting fresh intraday highs after
opening modestly higher.
The S&P 500 index added 5 points, or 0.2%, to 2,251, with
six of the 11 main sectors trading higher. Health-care stocks led
the gains, while financials pulled back the most. The benchmark was
looking at a 2.7% weekly gain.
The Dow Jones industrials Average advanced 28 points, or 0.1%,
to 19,646. Meanwhile, the Nasdaq Composite rose 28 points, or 0.5%,
to 5,445, thanks to a rally in biotechnology stocks. The iShares
Nasdaq Biotechnology ETF (IBB) was up 1.8%.
All three benchmarks were on track to post hefty weekly gains,
prompting some analysts to warn of a corrective pullback after a
solid rally.
On Thursday, five major stock benchmarks, including Russell 2000
and the Dow Jones Transports finished in record territory. That was
the first time in more than 18 years
(http://www.marketwatch.com/story/stock-benchmarks-just-did-something-they-havent-done-in-nearly-20-years-2016-12-08)
that they have all ended at all-time highs on the same day.
Read:This buying panic may last until Dow 20,000
(http://www.marketwatch.com/story/this-buying-panic-may-last-until-dow-20000-2016-12-08)
However, analysts have started to ask if the surge in stocks
since the election on Nov. 8 is now looking a bit overdone.
See:This top market timer says stocks' 'Trump bump' won't last
much longer
(http://www.marketwatch.com/story/this-top-market-timer-says-stocks-trump-bump-wont-last-much-longer-2016-12-09)
"The Relative Strength Index hints at deepening overbought
conditions in the U.S. stock markets, suggesting that the time for
a correction could be approaching," said Ipek Ozkardeskaya, senior
market analyst at London Capital Group, in emailed comments.
"Of course it is just a technical indicator, and we have seen
that investors have proved to be very eager in stocks over the last
couple of days," she added.
Economic news: It's a relatively quiet day on the economic
calendar. A reading on consumer sentiment for December comes out at
10 a.m. Eastern Time, and it is forecast to have risen to 95.0 from
93.8 in November.
Wholesale inventories for October are also due at 10 a.m.
Eastern.
There are no Federal Reserve speakers on tap as the central bank
has entered its "blackout" period ahead of its December 13-14
meeting.
Movers: Shares of Restoration Hardware Holdings Inc.(RH) plunged
19% after the home-goods retailer late Thursday lowered its outlook
(http://www.marketwatch.com/story/restoration-hardware-shares-plunge-as-company-warns-of-slower-holiday-sales-2016-12-08)
for the fourth quarter on slower holiday sales.
Vail Resorts Inc.(MTN) shares were modestly higher despite the
ski resort reporting earnings below expectations.
Other markets: Oil prices moved firmly higher as traders looked
ahead to Saturday's meeting between OPEC and non-OPEC oil producers
(http://www.marketwatch.com/story/oil-futures-jump-ahead-of-non-opec-weekend-meeting-2016-12-09).
Asian markets
(http://www.marketwatch.com/story/asian-markets-mostly-gain-shaking-off-ecb-easing-2016-12-08)
closed mixed, while European stocks traded mostly higher
(http://www.marketwatch.com/story/european-stocks-cling-to-11-month-high-as-bank-shares-take-a-breather-2016-12-09).
Gold prices slipped, and the dollar firmed against other major
currencies, with the ICE Dollar index up 0.4%.
(END) Dow Jones Newswires
December 09, 2016 09:49 ET (14:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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