Real Estate, Phone Shares Join Trump Rally as Dow Sets Record

  • Investors will weigh reports before Fed meeting next week
  • Dow at all-time high, poised for best annual gain since 2013

U.S. Stocks Edge Towards Record, What's Next?

U.S. stocks advanced as the Dow Jones Industrial Average set a record for the second day in a row. Telecom, real estate and financial shares climbed as 10-year Treasury yields held steady around 2.4 percent, utilities declined.

The S&P 500 Index added 0.3 percent to 2,212.2 by 4 p.m. in New York as phone companies and real estate shares, which have trailed banks and energy stocks since the presidential election, rallied with banks that extended gains to 15 percent the past month.

Nine of 11 sectors advanced as the benchmark gauge for American equity closed less than 0.1 percent below its all-time high reached last month. Small-cap stocks in the Russell 2000 Index jumped more than 1 percent and the Nasdaq 100 Index added 0.2 percent.

  • VIX down 2.9% to 11.8, lowest since August
  • Energy companies slid 0.1% after dipping as much as 1% as crude falls from 16-month high
  • Factory orders in line with expectations as durable goods beat expectations
  • ADSK, NFLX, BWA, KMX, UAL biggest movers in S&P 500, all up at least 4%

“It truly has been a rather incredible run for financials and small caps -- with a good deal of investors banking on changes in policy and the potential for economic growth to come,” writes JonesTrading’s Yousef Abbasi

  • Fed officials announce policy decision on Dec. 14; traders are pricing in a 100% chance they’ll raise rates, compared with 68% odds at the start of November.
  • Investors also awaiting European Central Bank meeting on Dec. 8 for insight on how Italy’s referendum vote will affect Mario Draghi’s quantitative easing program.
  • S&P 500 is heading for its first annual advance since 2014, up 8.2% this year. Dow has rallied 10 percent.

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