Dow And Nasdaq Reach New Record Closing Highs - U.S. Commentary

(RTTNews) - After ending the previous session modestly higher, stocks saw some further upside during trading on Tuesday. With the upward move on the day, the Dow and the Nasdaq reached new record closing highs.

The Dow gave back some ground after climbing within striking distance of 20,000 in early trading but still closed up 91.56 points or 0.5 percent at 19,974.62. The Nasdaq climbed 26.50 points or 0.5 percent to 5,483.93, and the S&P 500 rose 8.23 points or 0.4 percent to 2,270.76

The continued strength on Wall Street reflected the recent upward momentum, as it came despite a lack of major catalysts amid another quiet day on the U.S. economic front.

Traders seemed to shrug off any geopolitical concerns stemming from an apparent terrorist attack on a Berlin Christmas market and the assassination of the Russian ambassador to Turkey.

While some analysts have suggested that the path of least resistance remains to the upside, others have cautioned that the markets are due for a correction following recent strength.

Nonetheless, overall trading activity on the day remained somewhat subdued, as some traders looked to get a head start on the holidays.

Among individual stocks, shares of Conatus Pharmaceuticals (CNAT) spiked higher after the company announced a licensing agreement with Novartis (NVS) for its liver disease treatment.

Acadia Pharmaceuticals (ACAD) also saw notable strength after announcing positive top-line results from its Phase II exploratory study of pimavanserin in patients with Alzheimer's disease psychosis.

On the other hand, shares of General Mills (GIS) came under pressure after the food company reported second quarter results that came in below expectations.

Sector News

After falling sharply in recent sessions, steel stocks showed a strong move back to the upside. The NYSE Arca Steel Index surged up by 2.3 percent, bouncing off its lowest closing level in a month.

U.S. Steel (X), AK Steel (AKS), and Cliffs Natural Resources (CLF) turned in some of the sector's best performances on the day.

Airline stocks also saw considerable strength, driving the NYSE Arca Airline Index up by 2.1 percent. SkyWest (SKYW) and Hawaiian Holdings posted standout gains.

Notable strength was also visible among financial stocks, with the NYSE Arca Broker/Dealer Index and the Dow Jones Banks Index climbing by 1.6 percent and 1.5 percent, respectively

Biotechnology and railroad stocks also saw some strength on the day, while most of the other major sectors showed more modest moves.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index advanced by 0.5 percent, while Hong Kong's Hang Seng Index fell by 0.5 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index climbed by 0.6 percent, the U.K.'s FTSE 100 Index and the German DAX Index rose by 0.4 percent and 0.3 percent, respectively.

In the bond market, treasuries pulled back following the strength seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.6 basis points to 2.568 percent.

Looking Ahead

A report on existing home sales may attract some attention on Wednesday, although trading activity may continue to wane going into the holiday weekend.

On the earnings front, Nike (NKE) and FedEx (FDX) are due to report their quarterly results after the close of today's trading.

Accenture (CAN), Finish Line (FINL), and Paychex (PAYX) are also due to release their results before the start of trading on Wednesday.