Tuesday January 9, 2018
07:07 AM GMT+8

Advertisement

More stories

Traders work on the floor of the New York Stock Exchange in New York January 8, 2018. — Reuters picTraders work on the floor of the New York Stock Exchange in New York January 8, 2018. — Reuters picNEW YORK, Jan 9 — The S&P 500 extended its winning streak for 2018 yesterday although its advance slowed to a crawl as the healthcare and financial sectors weighed and investors awaited the start of the quarterly earnings season.

The healthcare sector was the S&P’s worst performer yesterday, and investors were cautious about pouring money into bank stocks before the companies kick off the fourth-quarter earnings season later this week.

“We had a big move last week and everyone knows earnings is coming up. People don’t want to chase too much further when you have a round of fundamental inputs in the next few weeks,” said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

The Dow Jones Industrial Average fell 12.87 points, or 0.05 per cent, to 25,283, the S&P 500 gained 4.56 points, or 0.17 per cent, to 2,747.71, and the Nasdaq Composite added 20.83 points, or 0.29 per cent, to 7,157.39.

The three major indexes kicked off 2018 with their strongest first four trading days in more than a decade, according to Reuters data. The Dow had its strongest start since 2003, and the Nasdaq and S&P 500 had their strongest starts since 2006.

Historically, the first five trading days of January can be an indicator for the market’s direction for the full year, according to the Stock Traders Almanac.

The S&P 500’s healthcare sector ended 0.4 per cent lower. Last week it rose 3.2 per cent.

The Nasdaq biotech index fell 1.4 per cent, on track for its biggest one-day percentage decline since mid-December, led by a 3.7 per cent drop in Biogen Inc and a 3.3 per cent decline in Regeneron Pharmaceuticals Inc.

A 0.4 per cent decline in the bank subsector pressured the broader financials index, which fell 0.1 per cent. Investors were waiting for more details about the impact of recent US corporate tax cuts in fourth-quarter earnings calls when the reporting season begins later in the week.

Wells Fargo and Citigroup fell more than 1 per cent while Goldman Sachs declined 1.5 per cent. Most big US lenders have estimated one-off charges to their fourth-quarter earnings on account of US tax cuts.

Utilities were the S&P’s biggest percentage gainers, regaining some ground lost in the previous week along with real estate.

Caterpillar closed up 2.5 per cent to US$166.03 (RM665.02), just below a record high set earlier in the day, after JP Morgan upgraded the stock saying the tax overhaul could help North America’s construction business cycle extend in 2018.

Kohl’s Corp rose 4.7 per cent after the department store operator posted far stronger same-store sales for the holidays than its bigger peers.

GoPro Inc shares ended down 12.8 per cent at US$6.56 after the company said it would be open to a sale but is not actively pursuing one. Earlier in the day, the shares lost about a third of their value, hitting a record low at US$5.04, after GoPro announced preliminary fourth-quarter revenue that was well below expectations and said it would exit the drone business.

Advancing issues outnumbered declining ones on the NYSE by a 1.40-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favoured advancers.

The S&P 500 posted 98 new 52-week highs and no new lows; the Nasdaq Composite recorded 124 new highs and 26 new lows.

Volume so far on US exchanges was 6.36 billion shares, compared to the 6.28 billion average for the full session over the last 20 trading days. — Reuters

Advertisement

MMO Instagram

Tweets by @themmailonline