Stocks swoon on Trump remarks; Nasdaq at new high
Stocks ended higher Wednesday -- and the super-hot Nasdaq notched another new high -- in a volatile session that saw sharp swings after President-elect Donald Trump met with the press in a news conference for the first time in six months.
The Dow Jones industrial average climbed 99 points, or 0.5% to 19,954.28, while the S&P 500 ended up 0.3% to about a point and half shy of its record closing high of 2276.98.
It was the seventh winning session in a row for the Nasdaq composite, which gained 0.2%. It notched a new closing high of 5563.65, a dozen points above the previous record set the day before.
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Health care stocks got hit after Trump criticized the industry moving production overseas as well as the bidding process for drugs. Energy stocks continued their strength as oil prices headed higher.
The health care sector was the biggest loser among the S&P 500 sectors. Trump said the government has to create new bidding procedures for the pharmaceutical drug industry “because they’re getting away with murder.” The remarks sent the S&P health care sector down 1%. Several pharmaceutical companies slumped, with Endo International (ENDP) falling 8.5%, the biggest decliner in the S&P 500. Perrigo (PRGO) lost 6.9% and Mallinckrodt (MNK) tumbled 6.2%.
Energy stocks were the biggest winners as oil prices jumped. Benchmark U.S. crude rose rose $1.43, or 2.8%, to $52.25 a barrel in electronic trading. Shares of Exxon Mobil rose 0.8%.
Bond prices rose after Trump's news conference, sending the yield on the 10-year Treasury note down to 2.36% from 2.38% Tuesday.
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Investors were also looking ahead to the start of corporate earnings reports later this week. Big U.S. companies start reporting fourth-quarter earnings this week. On Friday JPMorgan Chase, Wells Fargo and Bank of America release their results.
Overseas, Germany’s DAX was up 0.5% while France’s CAC 40 was flat. Britain’s FTSE 100 added 0.2%.
Japan’s benchmark Nikkei 225 rose 0.3% and Hong Kong’s Hang Seng gained 0.8%. The Shanghai Composite slipped 0.8%.
Contributing: Associated Press