U.S. stock indexes on Tuesday traded modestly higher, but gains were capped by declines in technology, health-care and consumer-staples stocks after a brisk, broad-market runup in the previous session.
The SP 500 set a fresh all-time, intraday high, marked by a resurgence in buying on Wall Street, though some of that enthusiasm has cooled in late-morning trade. Investors also awaited a key product debut by Apple.
The Dow Jones Industrial Average
rose 60 points, or 0.3%, 22,118, but its gains were being limited by a sharp decline in shares of McDonald’s Corp.
which was seeing its stock on track for the worst one-day decline since July 26, 2016, according to FactSet data.
The SP 500
added 3 points, or 0.1%, to 2,491, marking a new intraday day high previously at 2,490.87, led by a second straight day of gains for financials as the yield of the 10-year Treasury note
at 2.16%, compared with around 2.05% late last week, continued to climb, supporting the business models of lenders. Meanwhile, health care, real-estate, and utilities were the worst performing sectors, trading in the red.
The Nasdaq Composite Index
meanwhile, was flat at 6,434, after trading in record territory earlier in the session.
Robert Pavlik, chief market strategist at Boston Private Wealth, said recent moves are a combination of the unwind of the fear trade, helping lift rates and the banking sector in tandem, typically a bellwether for the rest of the economy. He argued said the market that has broadly offered signs that it is growing at a healthy, if not robust, pace, which should be taken as a bullish sign.
“Today’s movement is a [further] unwinding of the fear trade,” Pavlik said. He has maintained a fairly rosy outlook for the SP 500 with a yearend forecast at 2,535, about 2% above current levels.
“There will be some more volatility before the month is over but I am not letting that bother me. I am seeing an earnings environment that is supportive at these levels but we will likely get these periods where people ar worried abut valuations,” he said.
Check out: MarketWatch’s coverage of Delivering Alpha
Tuesday’s moves come after the SP 500 and the Dow industrials logged their biggest one-day percentage gains in months. The SP 500 finished up 1.1% to reach an all-time high of 2,488.11, while the Dow retook a key level, closing up 1.2% at 22,058.37.
At the same time, the Nasdaq climbed 1.1%. Stocks rallied after Hurricane Irma caused less damage than expected, and as tensions around North Korea eased.
Read: This legendary value-investor is another stymied by expensive stocks
which is holding an event later Tuesday, rose by 0.3%, after Monday’s was down 0.4% early Tuesday. Investors expect the iPhone maker to reveal its 10th anniversary mobile phone, which reportedly has a price tag of around $1,000. The Cupertino, Calif.-based company’s keynote presentation is slated to commence at 1 p.m. Eastern.
Also read: What time is the iPhone launch event?
Opinion: Apple’s new iPhone won’t move the stock the way these drivers could
Tired of the FANG gang? These 2 tech stocks look like they’re in the same class
a report on Job openings in the U.S. set a record in July, climbing steadily despite the lowest unemployment rate in years. The Labor Department reported on Tuesday that openings edged up to 6.17 million in July from 6.12 million in June. It’s the first time openings have topped 6 million for two straight months since the government began keeping track in 2000.
Data earlier showed sentiment among small-business owners ticked up in August.
Moving stocks: Shares of Teva Pharmaceuticals Industries Ltd.
rose nearly 11% after Israeli-based pharmaceutical group said late Monday it will sell its Pargard IUD product to Cooper Cos.
for $1.1 billion in cash. Cooper shares were off 0.3%.
shares rose 0.8%. Standard Poor’s announced late Monday a downgrade of its outlook on the credit-reporting agency to negative from stable in the wake of a recent breach that put the data of 143 million Americans at risk. Equifax shares fell 8.2% on Monday.
Read: Equifax lobbied for more lax regulations ahead of massive data breach
Other markets: Asian markets
saw tepid gains, outside of a 1.2% rally for the Nikkei
which hit its best intraday level in a month as the yen
continued to fall against the dollar. The dollar index
meanwhile, was modestly higher, marked by that stronger dollar/yen cross.
The British pound
hit the highest level this year after U.K. inflation rose by more than expected.
Read: Why the Swiss central bank may be betting on a stronger euro
The Stoxx Europe 600 index
put on about 0.5%. Oil prices
drifted lower, and gold prices
also fell modestly.