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While you were sleeping: UPDATED Dow hits record high above 18,800

The Nasdaq fell as some investors are concerned tech stocks might suffer from Trump's protectionist stance.

Margreet Dietz
Fri, 11 Nov 2016

Wall Street advanced, with the Dow climbing to a record high, while US Treasurys slid, amid bets that US president-elect Donald Trump will spend more and regulate less.

"People are going through the possibilities about what Washington looks like today and what Washington can do or not do for them," John Manley, chief equity strategist for Wells Fargo Funds Management in New York, told Bloomberg.

"Corporations feel there's a less restrictive hand. People may take that as a positive."

At the close, the Dow Jones Industrial Average was up 218.19 points, or 1.2%, to 18,807.88. Earlier in the session it touched an all-time record high 18,810.58.

The Dow's previous high was 18,636 on August 15 and is up more than 5% for the week

The Standard & Poor's 500 Index added 0.2% to 2167.48 and is up 4% for the week.

The Dow rose, led by advances in Pfizer and JPMorgan Chase, up 4.7% and 3.9% respectively. Bucking the trend, Procter & Gamble and Coca-Cola declined 3.4% and 2.9% respectively.

Tech stocks fall
The Nasdaq Composite Index fell 0.6%, as shares of Amazon and Apple declined 3.5% and 2.3% respectively.

"Tech stocks aren't really in the handbook," Art Hogan, chief market strategist at Wunderlich Securities in New York, told Reuters.

"They aren't really going to benefit from Trump's stimulus spending on infrastructure and are sort of sitting in the middle.

"They aren't part of the oversold sectors such as banks and health nor are they high dividend paying stocks that [are] getting sold off."

Also, some investors are concerned tech stocks might suffer from Trump's protectionist stance.

The US dollar rose while Treasury yields fell amid bets a Trump presidency will bolster inflation, while the Federal Reserve will raise interest rates.

Bond yields rise
Yields on the benchmark 10-year note rose four basis points to 2.10%, while yields on the 30-year bond climbed increased five basis points to 2.90%, according to Bloomberg.

"The [US] dollar will do very well" on a broad trade-weighted basis in the next 12 months, Bilal Hafeez, global head of foreign-exchange research at Nomura Holdings in London, told Bloomberg.

"The Fed will be increasing interest rates, the US will be engaging in fiscal stimulus of some kind, which is much-needed by economies around the world, so we'll have faster growth and more inflationary pressures."

In Europe, the Stoxx 600 Index ended the day with a 0.3% decline from the previous close. Germany's DAX Index fell 0.2%, France's CAC 40 Index declined 0.3%, while the UK's FTSE 100 Index shed 1.2%.

(BusinessDesk)

Margreet Dietz
Fri, 11 Nov 2016
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While you were sleeping: UPDATED Dow hits record high above 18,800
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