Wall Street Retreats From Highs on Light Trading
US stocks slipped today as investors stepped back from a recent rally fueled by optimism that President-elect Trump will roll back regulatory agency reach and promote infrastructure spending. The dip pulled the Dow Jones industrial average further away from the 20,000 mark after it nearly breached the level this week for the first time.
By Paolo Palazzi-Xirinachs
Thursday, December 22, 2016 - 00:00
The Dow Jones Industrial Average was last down 0.07% at 19,928.76 points and the S&P 500 had lost 0.15% to 2,261.79, while the Nasdaq Composite dropped 0.36% to 5,451.49.
The Dow Jones finally fell toward 19,900 after climbing yesterday within 14 points of 20,000, while yields on 10-year government debt climbed to 2.55%. Gold slumped to $1,130 an ounce and crude prices settled a nickel short of $53 a barrel.
Following a sharp rally since the Nov. 8 US election, the Dow is still up about 14% for the year and the S&P 500 is 11% higher on bets that the economy will benefit from Trump's plans for deregulation and infrastructure spending. Data on durable goods orders showing increased business activity may reinforce bets that Donald Trump’s fiscal stimulus plans will stoke growth. Speculation the President-elect will open the spigot of spending has sent the dollar to near a 14-year high against the euro and pushed the Dow Jones Industrial Average to almost 20,000 earlier this week.
A report earlier today showed that the US economy grew faster than initially thought in the third quarter, notching its best performance in two years. Gross domestic product increased at a 3.5% annual rate instead of the previously reported 3.2% pace, the Commerce Department said. US mortgage rates rose, with the 30-year reaching the highest level since April 2014, after the Federal Reserve increased its benchmark lending rate.
Consumer spending, which accounts for more than two-thirds of US. Economic activity, rose 0.2% in November, below the estimated 0.3% gain.
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