Jan 5 (Reuters) - The Dow hit a record high on Wednesday as investors swapped technology stocks for economy-linked cyclicals that stand to benefit from a high interest rate environment, ahead of minutes from the Federal Reserve's December meeting.<\/p>\n
Seven of the 11 major S&P sectors advanced in early afternoon trading with value-oriented energy (.SPNY), financials (.SPSY) and materials (.SPLRCM) shares leading the pack.<\/p>\n
Tech giants including Apple Inc (AAPL.O) Google-owner Alphabet Inc (GOOGL.O), Amazon.com , Meta Platforms (FB.O) and Microsoft Corp (MSFT.O) fell between 0.5% and 2.2% to weigh the most on the S&P 500 (.SPX) and the Nasdaq (.IXIC) indexes.<\/p>\n
Register<\/p>\n
Growth shares were also under pressure from a recent rise in U.S. Treasury yields, sparked by growing angst towards the prospect of interest rate hikes by the Fed to curb inflation.<\/p>\n
\"We're seeing a decided shift from technology as the yields on the 10-year jumped,\" said John Lynch, chief investment officer for Comerica Wealth Management.<\/p>\n
\"You just saw some of those positions unwind but nonetheless, higher market interest rates are weighing on technology.\"<\/p>\n
The U.S. central bank said last month it would end its pandemic-era bond buying in 2022, signaling at least three interest rate hikes for the year. Minutes from the meeting are due at 1400 ET\/1900 GMT.<\/p>\n
Salesforce.com Inc (CRM.N) slid 5.4% after UBS lowered its rating on the stock to \"neutral\" from \"buy\". <\/p>\n
At 12:07 p.m. ET the Dow Jones Industrial Average (.DJI) was up 92.07 points, or 0.25%, at 36,891.72, the S&P 500 (.SPX) was down 8.05 points, or 0.17%, at 4,785.49 and the Nasdaq Composite (.IXIC) was down 144.08 points, or 0.92%, at 15,478.64.<\/p>\n
Intel Corp jumped 4.1% and was the top percentage gainer on the Dow after Northland Capital Markets upgraded the chipmaker's stock to \"outperform\" from \"market perform\". <\/p>\n
The ADP National Employment report showed private payrolls increased by 807,000 jobs last month, more than double of what economists polled by Reuters had forecast. read more <\/p>\n
The report comes ahead of the Labor Department's more comprehensive and closely watched nonfarm payrollsdata for December on Friday.<\/p>\n
Peloton Interactive (PTON.O)edged 0.8% lower after J.P. Morgan cut its price target on the fitness firm's stock on expectations of softer demand. <\/p>\n
AT&T Inc (T.N) rose 3.8% after the U.S. telecom company added 880,000 monthly paying phone subscribers in the fourth quarter. read more <\/p>\n
Meanwhile, Citigroup analysts said they now expect the S&P 500 index to touch 5,100 by the end of 2022 on the back of strong corporate earnings. read more <\/p>\n
Advancing issues outnumbered decliners by a 1.17-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.38-to-1 ratio on the Nasdaq.<\/p>\n
The S&P index recorded 59 new 52-week highs and no new low, while the Nasdaq recorded 69 new highs and 109 new lows.<\/p>\n
Register<\/p>\n
Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel<\/p>\n
Our Standards: The Thomson Reuters Trust Principles.<\/p>\n
<\/p>\n
See original here: <\/p>\n
Dow hits record high on cyclical boost ahead of Fed minutes; tech falls - Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Jan 5 (Reuters) - The Dow hit a record high on Wednesday as investors swapped technology stocks for economy-linked cyclicals that stand to benefit from a high interest rate environment, ahead of minutes from the Federal Reserve's December meeting. Seven of the 11 major S&P sectors advanced in early afternoon trading with value-oriented energy (.SPNY), financials (.SPSY) and materials (.SPLRCM) shares leading the pack. Tech giants including Apple Inc (AAPL.O) Google-owner Alphabet Inc (GOOGL.O), Amazon.com , Meta Platforms (FB.O) and Microsoft Corp (MSFT.O) fell between 0.5% and 2.2% to weigh the most on the S&P 500 (.SPX) and the Nasdaq (.IXIC) indexes. Continue reading