Dow Reaches New Record High But Nasdaq, S&P 500 Close Lower

After moving in opposite directions early in the session, the major averages remained mixed throughout the trading day on Thursday. The Dow climbed to a new record closing high, while the broader Nasdaq and S&P 500 spent most of the day in negative territory.

While the Dow rose 45.30 points or 0.2 percent to 22,203.48, the Nasdaq slid 31.10 points or 0.5 percent to 6,429.08 and the S&P 500 edged down 2.75 points or 0.1 percent to 2,495.62.

The pullback by the Nasdaq and the S&P 500 came following the release of a Labor Department report showing a bigger than expected increase in consumer prices in the month of August.

The Labor Department said its consumer price index climbed by 0.4 percent in August after inching up by 0.1 percent in July. Economists had expected consumer prices to rise by 0.3 percent.

Excluding food and energy prices, the core consumer price index rose by 0.2 percent in August following a 0.1 percent uptick in the previous month. The increase in core prices matched economist estimates.

The annual rate of growth in consumer prices accelerated to 1.9 percent in August from 1.7 percent in July, although the annual growth in core consumer was prices was unchanged at 1.7 percent.

The faster rate of consumer price growth has raised some concerns about the outlook for the Federal Reserve’s monetary policy.

A separate report from the Labor Department showed an unexpected pullback in initial jobless claims in the week ended September 9th.

The report said initial jobless claims fell to 284,000, a decrease of 14,000 from the previous week’s unrevised level of 298,000. The drop surprised economists, who had expected jobless claims to inch up to 300,000.

Geopolitical concerns also generated some selling pressure after North Korea threatened to use nuclear weapons to “sink” Japan and reduce the U.S. to “ashes and darkness” for supporting a new round of sanctions by the United Nations.

Meanwhile, the Dow is benefiting from notable gains by United Technologies (UTX),…

Article Source…

Leave a Reply

Your email address will not be published. Required fields are marked *