US stocks closed just off record highs on Tuesday after key GDP data was revised upwards and counteracted the depression felt in the energy sector.
The S&P 500 ended 0.1% higher at 2204, within reach of the record 2,213.35 it marked on November 25.
Healthcare and real-estate stocks led the gains as investor sentiment warmed following an upward revision in third-quarter US GDP growth figures. Conversely, the energy sector was the biggest loser, declining 1.2%, with anxieties around Wednesday’s highly-anticipated OPEC meeting in Vienna.
The Dow Jones Industrial Average rose 0.1%, and the tech-heavy Nasdaq Composite finished 0.2% higher at 5,379.92 after hitting a fresh intraday high of 5,403 earlier in the session.
Early trading
US stocks were higher on Tuesday, with pharma, healthcare and tech stocks in the vanguard after positive economic data helped hurl the Nasdaq Composite to a fresh record high intraday.
The tech-heavy index rose 0.6% to break the 5,400 mark for the first time, surpassing its previous intra-day record of 5,398.92, set on Friday. Pharmaceutical companies led the gains with the Nasdaq Biotech index rising 0.8%, extending its rally since the defeat of Hillary Clinton – who campaigned against high drug prices – in the recent US presidential election.
Meanwhile, the market bellwether S&P 500 as well as the Dow Jones Industrial Average also approached the record highs set on Friday, although energy stocks have been a drag as uncertainty persists over OPEC’s ability to reach an agreement on production cuts at its meeting on Wednesday.
The S&P 500 was up 0.3% at 2207 and led by Alexion Pharm Inc (NASDAQ:ALXN) – one of those very Nasdaq pharma stocks lapping up gains – up 5% to $125.33.
Another top riser was Unitedhealth Group Inc (NYSE:UNH) up 3.6% to $157.52.
Meanwhile, Tiffany (NYSE:TIF) which complained that Trump tower affected adversely their flagship store’s sales as it is neighbours with Trump Tower, seemed to win investors’ vote as the stock was the second-highest rising in the S&P 500, up 3.9% to $81.21.
The S&P Midcap 400 was up 0.2% to 1631 and led by Thor Industries (NYSE:THO), up 13.2% to $102.40 after its first quarter earnings beat forecasts.
The S&P Smallcap 600 was up 0.08% at 815 and led higher by Kindred Healthcare (NYSE:KND) up 7.6% to $7.05.
Pre-Open
US stocks are expected to open firmer on Tuesday after forecast-beating revised third quarter GDP data was released for the world’s biggest economy.
US growth heated up more than initially thought in the third quarter, underscoring a brightening American economy after a disappointing start to 2016.
The economy grew at an annualised rate of 3.2% in the third quarter, according to a second reading on gross domestic product from the Commerce Department. That compares with Wall Street estimates of 3% and an initial reading of 2.9%.
The data will also cement a rate hike from the Fed on Dec 14, as well as buoy Wall Street stocks. Among speakers later in the session, Fed’s William Dudley presents at 0915 ET (1415 GMT)
Even lower oil prices on continued anxieties over whether OPEC will reach a supply cutting deal on Wednesday was unable to derail the bourse. The S&P 500 future was indicated up 0.1%.
It isn’t everyday that a company almost overtly blames a politician for lower sales but that is what Tiffany (NYSE:TIF), the iconic jewelry retailer, said on Tuesday.
Chaos surrounding its flagship store on New York City's 5th Avenue, which is neighbours with Trump Tower, was blamed for lower sales.
The comments didn’t appear to hurt the stock, however, and might even have given it a lift as Tiffany shares were trading up 5.2% at $82.21 pre-market.