* Dow hits record intraday, closing highs for third straight
* S&P 500 hits record closing 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
* Oil prices slip in volatile trade
(Updates to close of U.S. markets)
By Sam Forgione
NEW YORK, Nov 23 The Dow Jones industrial
average and S&P 500 ended at record highs 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 for interest rate hikes.
Gains in industrial stocks helped the U.S. indexes, with the
S&P 500 industrial sector ending up 0.8 percent. The
S&P's gains were meager, while the Nasdaq slipped after a drop
in tech heavyweights ahead of the Thanksgiving Day holiday on
Thursday and an early market close on Black Friday. A 10.5
percent drop in Eli Lilly & Co also weighed on the S&P.
The Nasdaq had touched record closing and intraday highs
over the past two days. Expectations that markets would benefit
from U.S. President-elect Donald Trump's policies have helped
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 firmer after hitting its highest level since
U.S. two-year Treasury note yields rose to a
6-1/2 year high of 1.151 percent, while benchmark 10-year notes
hit 2.417 percent, the highest since July 2015. The
peaks were touched after data showed that U.S. manufactured
capital goods rebounded in October, boosting expectations for
faster economic growth.
"Today is the beginning of the holiday, so many people have
left or are on their way," said Ken Polcari, director of the
NYSE floor division at O'Neil Securities in New York. "You could
continue to see a little bit an overreaction either way. ... But
I think next week ... I wouldn't be surprised to see the market
MSCI's all-country world equity index was
last down 0.8 points, or 0.19 percent, at 412.57.
The Dow Jones industrial average ended up 59.31
points, or 0.31 percent, at 19,083.18. The S&P 500 closed
up 1.78 points, or 0.08 percent, at 2,204.72. The Nasdaq
Composite closed down 5.67 points, or 0.11 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 that the
Federal Reserve would tighten credit next month and in 2017.
"We have had a slew of data today, all supportive of the low
threshold needed for rate increases," said Marvin Loh, senior
global markets strategist, at BNY Mellon in Boston.
Oil prices fell slightly in volatile trade as investors
doubted that the Organization of the Petroleum Exporting
Countries would agree to a production cut large enough to make a
significant dent in the global glut of crude as U.S. drilling
Brent crude settled down 17 cents, or 0.35 percent,
at $48.95 a barrel, while U.S. crude settled down 7
cents, or 0.15 percent, at $47.96 a barrel.
Gold slid to a 9-1/2-month low of $1,181.45 an ounce.
U.S. gold futures settled down 1.8 percent at $1,189.30.
(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 Chizu
Nomiyama and Richard Chang)