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Overnight Markets: Financials lead Wall Street to record high

Overnight Markets: Financials lead Wall Street to record high

by Himanshu Singh Sep 13, 2017 at 04:29

All three major US stock indexes hit record closing highs on Tuesday, with financial stocks leading the charge, but gains were capped by unsteady trade in technology after Apple unveiled its latest line of iPhones.

The Dow Jones Industrial Average added 61 points, or 0.28%, to 22,119, the S&P 500 gained eight points, or 0.34%, to 2,497 and the Nasdaq Composite added 22 points, or 0.34%, to 6,454.

The S&P 500, Dow Jones industrials and Nasdaq Composite clocked record closes, with investors drawn to riskier assets as concerns about US tensions with North Korea eased and the financial impact from Hurricane Irma appeared less severe than was feared last week.

After the closing bell, Nordstrom shares jumped 8.8% after reports that the high-end retailer chose private equity firm Leonard Green & Partners to help take the company private.

The financial sector was the S&P 500’s biggest driver during the regular session as bank stocks were helped by rising US Treasury yields, while the utilities and real estate sectors lost ground. Goldman Sachs rose 2.2% after it unveiled a growth plan that could add as much as $5 billion in revenue annually. JP Morgan Chase & Co. added 1.23%.

Apple’s shares closed a volatile trading session 0.4% lower following the unveiling of its 10th anniversary edition of the iPhone. Apple’s release date of 3 November was later than some investors had expected.

The iPhone maker was the second-biggest drag on the S&P behind McDonald‘s, which fell 3.2% to a more than one-month low on concerns about its third-quarter results.

Shares of Teva Pharmaceuticals Industries Ltd. rose nearly 7% after the Israel-based pharmaceutical group said late Monday it will sell its Pargard IUD product to Cooper Cos. for $1.1 billion in cash. Cooper shares ended down 1.1%.

In Asia, shares notched gains on Wednesday after Wall Street closed at record levels following comments about tax reform and fading investor fears.

Japan's Nikkei 225 rose 0.39% on the softer yen. Across the Korean Strait, South Korea's benchmark Kospi index erased earlier losses to climb 0.08%.

Down Under, the S&P/ASX 200 tacked on 0.45%. Greater China markets bucked the trend to trade mostly lower. Hong Kong's Hang Seng Index fell 0.6%. The Shanghai Composite edged down 0.14%.

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