* S&P 500 posts 3.4 pct gain for month
* Energy index jumps as oil prices soar
* OPEC agreement also lifts bond yields
* Dow up 0.01 pct, S&P down 0.3 pct, Nasdaq down 1.1 pct
(Updates to close)
By Caroline Valetkevitch
Nov 30 U.S. stocks ended with big gains for
November on Wednesday thanks to a sharp post-election rally, but
the S&P 500 finished the day flat as drops in utilities and
technology offset energy's surge.
Energy shares jumped with oil prices after OPEC agreed to
cut production. U.S. oil prices rose 9.3 percent,
while the S&P energy index jumped 4.8 percent.
Bank shares also jumped after comments by Steven Mnuchin,
President-elect Donald Trump's pick for U.S. Treasury secretary,
told CNBC that tax reforms and trade pact overhauls would be
top priorities of the new administration. Bank of
America gained 4.5 percent.
But top dividend payers likes utilities and
telecommunications companies, whose stocks tend to fall as
interest rates rise, declined as bond yields jumped. The S&P
utility index was down 3.2 percent, while shares of
AT&T fell 2.2 percent.
"This is related to anticipation that if, indeed, energy
prices continue to rally ... it's going to benefit the U.S.
energy industry, which is a significant part of our economy,"
said Tim Ghriskey, chief investment officer of Solaris Group in
Bedford Hills, New York.
"That pressures other high-income plays, because as the
economy accelerates there's a greater possibility the Fed might
increase their pace of interest rate hikes," he said. "It could
be a reallocation of capital."
Investor expectations are high that the Federal Reserve will
raise rates at its meeting next month.
For the day, the Dow Jones industrial average was up
1.98 points, or 0.01 percent, to 19,123.58, the S&P 500
lost 5.85 points, or 0.27 percent, to 2,198.81 and the Nasdaq
Composite dropped 56.24 points, or 1.05 percent, to
For the month, the Dow was up 5.4 percent, the S&P 500 was
up 3.4 percent and the Nasdaq was up 2.6 percent.
All three indexes hit record highs this month. Investors
expect Trump's election will lead to higher spending on
infrastructure and simpler regulations.
Volume was well above average. About 9.5 billion shares
changed hands on U.S. exchanges, compared with the 7.9 billion
daily average for the past 20 trading days, according to Thomson
Declining issues outnumbered advancing ones on the NYSE by a
1.53-to-1 ratio; on Nasdaq, a 1.82-to-1 ratio favored decliners.
The S&P 500 posted 65 new 52-week highs and 3 new lows; the
Nasdaq Composite recorded 185 new highs and 47 new lows.
(Additional reporting by Yashaswini Swamynathan in Bengaluru;
Editing by Anil D'Silva and Nick Zieminski)