US stocks ended Tuesday at fresh record highs, grasped in the final minutes of a dramatic roller-coaster session, while Canadian stocks hit their highest since May 2015.
The market bellwether S&P 500 and the Dow Jones Industrial Average, having opened at a record high on the back of oil gains and the ongoing “Trump trade” which favoured retailer stocks and which saw the DJIA go above 19,000 for the first time, the tickers tumbled as oil prices reversed.
But in the final minutes of the session, the Dow managed not only to get above 19,000 again – it marked a fresh high at 19,043.90. The DJIA closed up 0.35% at 19,023. What is more, the Dow never turned negative this session.
A similar pattern developed for the S&P 500, which seesawed this session. But unlike the Dow, the S&P 500 dipped into the red midsession. The S&P closed up 0.2% at 2202.
The stock leading from the very start of the session in the S&P 500 was retailer Dollar Tree Inc (NASDAQ:DLTR) up 8.2% to $88.68.
Similarly, the top gainer in the S&P Midcap 400, which rose by 0.7% to 1628, was Chico’s Fas (NYSE:CHS) up 13.3% at $15.85. The S&P 400 also marked a fresh record high of 1,629.54 intraday.
The S&P Smallcap 600 ended up 1.3% at 816 and marked an intraday record high of 817.03.
He small-caps were led higher from the start of the session by Movado Group Inc (NYSE:MOV) up 14.47% to 29.48 after the jewelry and watchmaker announced bullish third quarter results. However, in the final settlement stage someone else sprinted to the finish line. Olympic Steel Inc (NASDAQ:ZEUS), which like US Steel (NYSE:X) and others stands to win from US President-elect Donald Trump’s planned infrastructure expansion, rose by 16.1% to $26.28. US Steel was the second-biggest riser on the S&P 500 all day.
The wider small-cap Russell 2000 closed up 0.9% at 1334. Earlier it hit 1,334.83 – a fresh record high.
Toronto’s TSX Composite index, which on Monday hit 15,000 for the first time since June 2015 extended gains and ended up 0.4% at 15,100 after hitting an intraday high of 15,112.65.
Open
US stocks opened higher and immediately registered fresh record highs on Tuesday, with the Dow Jones Industrial Average piercing 19,000 for the first time, as the Trump euphoria continued and oil prices were supportive of a supply curbing deal getting done by OPEC later this month.
The market bellwether S&P 500 was up 0.2% at 2201 but earlier hit 2203 – a fresh record high.
Things were not contained within the S&P either. The Dow Jones Industrial Average briefly climbed above 19,000 for the first time ever within the opening minutes of the New York market open. It was last up 0.1% to 18,982.
Perhaps appropriately, the stock leading gains on the S&P 500 was Dollar Tree Inc (NASDAQ:DLTR), up 9.8% to $89.98 after the retailer broke its negative surprise trend in third-quarter fiscal 2016 as its earnings topped estimates and improved year over year.
The S&P Midcap 400 was up 0.5% at 1624 and led by women’s clothier Chico's Fas (NYSE:CHS), up 10.5% to $15.46 after notching up significant third quarter growth after a cost reduction and efficiencies drive.
The S&P Smallcap 600 was up 0.7% at 811 and led by Movado Group Inc (NYSE:MOV) up 15.9% to $29.85 after the jewelry and watchmaker announced bullish third quarter results.
Supporting the bourse, US exisiting home sales in October came in higher than forecast at 5.6mln units versus a forecast for 5.43mln and above 5.49mln recorded in September. The data will not inhibit the Federal Reserve from likely raising rates next month.
Pre-Open
US stocks are seen opening firmer on Tuesday – and that means a fresh record high beckons – as oil prices continued to climb ahead of an OPEC summit month-end that is expected to promise supply curbs.
The S&P 500 market bellwether was expected to open up around 0.2%, or five points – chalking up a fresh record high above 2,200.
All three top line tickers – S&P 500, Dow Jones Industrial Average, and Nasdaq Composite – closed at record highs on Monday. And despite a few hiccups late last week, the rally on the back of Donald Trump’s surprise election victory earlier this month, looks set to continue.
The S&P 500 had closed at 2,198.18 – a record high close and just shy of the intraday record high of 2,198.70 it achieved.
The market actually fell for nine successive days in the two weeks leading up to the Nov 8 election, as Trump's campaign gained momentum due to concerns about rival Hillary Clinton's emails and investors turned anxious and unclear whether Trump would be good for business.
Ironically enough, the market rallied sharply the Monday before Election Day after FBI Director James Comey cleared Clinton -- an event that many investors interpreted as a sign that Clinton would wind up defeating Trump after all.
The US oil benchmark West Texas Intermediate closed up 4% on Monday. Before it opens, Europe’s Brent Crude future was up 0.04% at 48.92 – but off its daily best so far of $49.88. So whether oil prices will be enough to boost the bourse will be known in under one hour.
A number of oil companies, such as Marathon Oil (NYSE:MRO) were firmer pre-market, including Chesapeake Energy (NYSE:CHK) which was up a more convincing 1.4% at $6.45 pre-market. Meanwhile, Marathon Petroleum (NYSE:MPC) was up 1.7% at $47.96.
Freeport-McMoRan Inc (NYSE:FCX) advanced 2% to $14.80 pre-market after the top copper miner’s shares were upgraded by Cowen and Company which raised its price target on the stock from $15 to $20. Cowen and Company currently has an outperform rating on the stock.
Among data out on Tuesday are US Redbook for November 19 and US October existing home sales. But with markets fully pricing in a rate hike from the Fed next month and most data being historical rather than impacted by Trump’s election win, it is unlikely data other than massively weak figures will excite investors.