* Dow hits intraday record high for third straight day
* U.S. tech stocks weigh on S&P 500, Nasdaq
* U.S. two-year-yields hit 6-1/2-year high
* Dollar index rallies to more than 13-year peak
* Fed Nov meeting minutes show policymakers see need for
rate hike soon
* Oil prices little changed in volatile trade
(Updates to close of European markets, FOMC minutes )
By Sam Forgione
NEW YORK, Nov 23 The Dow Jones industrial
average hit a record high for a third straight day on Wednesday,
while U.S. two-year Treasury yields and the dollar hit
multi-year peaks after upbeat U.S. economic data reinforced
expectations of interest rate increases.
The Dow's peak of 19,074.51 marked its third straight record
intraday high, while the benchmark S&P 500 and Nasdaq slipped
after touching record intraday and closing highs over the past
two days. Expectations that markets would benefit from U.S.
President-elect Donald Trump's policies have helped boost
The Dow was helped by gains in industrial stocks, with the
S&P 500 industrial sector last up 0.7 percent. Ahead
of the Thanksgiving Day holiday on Thursday and an early market
close on Black Friday, a drop in tech heavyweights kept the S&P
500 and Nasdaq subdued, while a nearly 11 percent drop in Eli
Lilly also weighed on the S&P.
European shares steadied, with basic resources companies
underpinning the broader market following a rise in metals
prices. The European basic resources index ended 1.2
percent higher after hitting its highest level since
U.S. two-year Treasury note yields rose to 6-1/2
year highs of 1.151 percent after data showed that U.S.
manufactured capital goods rebounded in October, boosting
expectations of faster economic growth.
Short-and intermediate-dated debt has come under pressure,
partly as investors worry that the Federal Reserve may raise
rates faster than previously expected. Fed policymakers, at a
policy meeting a week before the presidential election, appeared
confident the economy was strengthening enough to warrant
interest rate increases soon, minutes from the Fed's Nov. 1-2
meeting showed on Wednesday.
"People are in a holiday mindset today, but nothing appears
to be in the horizon to derail the recent market strength," said
Andre Bakhos, managing director at Janlyn Capital in
Bernardsville, New Jersey.
MSCI's all-country world equity index fell
0.63 points, or 0.15 percent, to 412.74.
The Dow Jones industrial average was last up 41.67
points, or 0.22 percent, at 19,065.54. The S&P 500 was
down 0.94 points, or 0.04 percent, at 2,202. The Nasdaq
Composite was off 17.18 points, or 0.32 percent, at
Europe's broad FTSEurofirst 300 index closed
roughly flat at 1,344.19.
The dollar index, which measures the greenback
against a basket of six major currencies, surged to a more than
13-year peak of 101.910, bolstered by expectations of interest
rate increases by the Fed next month and in 2017.
"Speculation of a December rate hike reached mind-boggling
levels," said Lukman Otunuga, research analyst at Forex Time Ltd
(FXTM) in Croydon, England. "This could ensure dollar strength
remains a key theme moving forward."
Oil prices were little changed in volatile trade amid
investor doubts that OPEC would agree to a production cut large
enough to make a significant dent in the global glut of
Brent crude was last down 1 cent at $49.11 a barrel.
U.S. crude was up 6 cents at $48.09 per barrel.
Gold slid to a 9-1/2-month low of $1,181.45 an ounce. Spot
gold prices were last down $20.76, or 1.71 percent, at
$1,191.10 an ounce.
(Additional reporting by Yashaswini Swamynathan in Bengaluru,
Jemima Kelly in London, and Karen Brettell, Gertrude
Chavez-Dreyfuss and Catherine Ngai in New York; Editing by Nick
Zieminski and Chizu Nomiyama)