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September, 201811:08 PM



Nasdaq surges to end at record; Dow edges lower

Nasdaq surges to end at record; Dow edges lower

The Nasdaq surged to a fresh record on Thursday, boosted by higher media shares, as traders shrugged off trade-war worries amid signs of accelerating US growth.

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15.06.2018 08:34 AM

The Nasdaq surged to a fresh record on Thursday, boosted by higher media shares, as traders shrugged off trade-war worries amid signs of accelerating US growth.

The tech-rich Nasdaq Composite Index powered up 0.9 percent to 7,761.04, its second record in three days.

The Dow Jones Industrial Average dipped 0.1 percent to 25,175.31, while the  broad-based S&P 500 climbed 0.3 percent to 2,782.49.

The mostly positive session came one day after the Federal Reserve accelerated its timetable for hiking interest rates in the face of strengthening growth and amid reports the White House is readying an announcement on Chinese tariffs for Friday.

Kate Warne, an investment strategist at Edward Jones, said investors were not panicking at the Fed's more aggressive posture since it signaled a better economy.

"Investors are actually reacting to the strength that is suggested in the economy rather than the potential effects of tighter monetary policy," she said.

That optimism was propelled further by Thursday data showing better-than-expected May retail sales.

The market continues to monitor trade but has shifted from its earlier stance of reflexive selling off at headlines, Warne said.

Trade "has been looked at as something that the market will react to when it happens, as opposed to worrying about it," she said. "Investors are taking much more of a wait-and-see approach."

Adam Sarhan, founder of 50 Park Investment, said the relative weakness of the Dow reflected the heavy representation in the index of exporters that are vulnerable in a trade war. 

Boeing, Caterpillar and General Electric all fell Thursday.

Comcast jumped 4.6 percent after bidding $65 billion for key film and television assets of Rupert Murdoch's 21st Century Fox, topping an earlier offer from Disney. Disney climbed 2.3 percent and Fox won 2.1 percent.

Other media shares also advanced in anticipation that a federal judge's approval this week of the AT&T-Time Warner merger would lead to more consolidation.

Dish Network jumped 3.7 percent, Viacom 1.1 percent and Charter Communications 3.7 percent.
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