Today’s Trading Activity – Telecoms Keep Rising to Push Dow and S&P to New Records, Rates Rise on Economic Data
Dec 12, 2017
U.S. equities were mixed in Tuesday’s trading as the Dow marched 0.49% higher, the S&P added a more modest 0.20%, and the Nasdaq slipped 0.19%. The daily gains for the Dow and S&P pushed both indices to their third consecutive record highs. The S&P’s gains came on an evenly split performance where 50% of the covered companies rose and 50% of the companies fell. Telecommunication companies finished atop the S&P again and continued an impressive run that began nearly a month ago. Since the House passed its tax plan on November 16, the sector is up nearly 16% and has been one of the biggest beneficiaries of a tax-related sector rotation. At the other end of the S&P, utilities and energy companies were the worst performers. Crude prices reversed early morning gains as fears surrounding the shutdown of the Forties Pipeline appeared to subside. The daily climb for stocks was briefly interrupted by a tweet from Rand Paul saying he wouldn’t vote for a “budget-busting bill”. That tweet also had a brief impact on shorter bill yields. Further out, the 2-year yield closed 0.8 bps higher at 1.83% and the 10-year yield added 1.3 bps to 2.40%. U.S. yields were already tracking their European counterparts higher before the stronger-than-expected U.S. results for small business confidence and producer prices.