9-28-17 12:04 PM EDT | Email Article

By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica

Financial shares fall, but material sector advances

The Dow and S&P 500 were trading slightly higher on Thursday, but a decline in financial and technology produced a headwind, limiting gains that had been powered by a potential tax overhaul.

What are stocks doing?

The Dow Jones Industrial Average rose 33 points, or 0.1%, to 22,374, with shares of McDonald's Corp., (MCD) delivering a lift to blue chips. The S&P 500 was less than a point higher at 2,506, having ended about 0.1% below its closing record on Wednesday. Financials and consumer-discretionary stocks were off 0.2%.Those groups were offset by a rise in the material sector, up 0.5%, headlined by a 2.9% rise in shares of Eastman Chemical Co. (EMN)

The Nasdaq Composite Index skidded 14 points, or 0.2%, lower to 6,440. The tech-heavy index jumped more than 1% on Wednesday.

The Russell 2000 slipped 0.2% to 1,482. The index of small-capitalization companies ended at a record Wednesday.

What's driving the market?

The latest economic data painted a mixed picture of the economy. Jobless claims rose by 12,000 in the latest week, although this spike was tied to Hurricanes Irma and Harvey, which devastated Florida parts of Texas. Separately, a read on second-quarter economic growth was raised (http://www.marketwatch.com/story/economys-2nd-quarter-growth-raised-to-31-2017-09-28) to 3.1% from 3%.

A couple of Federal Reserve speakers may draw some attention as rate-hike prospects heat up. Kansas City Fed President Esther George will speak on the economy and monetary policy at 9:45 a.m. Eastern. Fed Vice Chair Stanley Fischer will speak on developments in central banking to a Bank of England conference in London at 10 a.m. Eastern. Fischer earlier this month said he's planning to resign from the Fed next month (http://www.marketwatch.com/story/vice-chairman-stanley-fischer-announces-resignation-from-the-fed-2017-09-06).

On Wednesday, Boston Fed President Eric Rosengren said he backs "regular and gradual" interest-rate hikes, saying they would be a form of insurance against the possibility of overheating the economy (http://www.marketwatch.com/story/feds-rosengren-backs-regular-and-gradual-interest-rate-hikes-2017-09-27).

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

What are market participants saying?

While stocks rose Wednesday as President Donald Trump announced his "once-in-a-generation" tax overhaul (http://blogs.marketwatch.com/capitolreport/2017/09/27/republicans-roll-out-tax-cut-plans-for-individuals-and-companies-live-blog/), the excitement that lifted equities was replaced by questions on how the plan will be implemented.

"We shall wait and see how Trump's plans evolve into legislation," said Deutsche Bank's strategist Jim Reid in a note on Thursday. "Our U.S. team's early take is that they see a prospect of some reforms occurring at the corporate level (particularly for small corporates), but the potential for substantive reform of personal tax is much lower."

Which stocks are in focus?

Streaming-software and device-maker Roku Inc. jumped 31% in its trading debut, after its initial public offering priced at $14 a share on Wednesday (http://www.marketwatch.com/story/roku-sets-14-per-share-ipo-price-on-13-billion-valuation-2017-09-27).

Read: 5 things to know about Roku (http://www.marketwatch.com/story/roku-ipo-5-things-to-know-about-the-streaming-device-company-2017-09-05)

(http://www.marketwatch.com/story/roku-ipo-5-things-to-know-about-the-streaming-device-company-2017-09-05)Exa Corp.(EXA) surged 43% after French software company Dassault Systemes SE (DASTY) said it would buy the U.S. simulation-software developer in a cash deal valued at $400 million (http://www.marketwatch.com/story/dassault-systemes-to-buy-exa-for-400-million-2017-09-28).

(http://www.marketwatch.com/story/dassault-systemes-to-buy-exa-for-400-million-2017-09-28)Shares of BlackBerry Ltd.(BB.T) jumped 13% after a surprise profit and revenue beat (http://www.marketwatch.com/story/blackberrys-stock-soars-after-surprise-profit-revenue-beat-2017-09-28).

(http://www.marketwatch.com/story/blackberrys-stock-soars-after-surprise-profit-revenue-beat-2017-09-28)Southwest Airlines Co.(LUV) shares rose 0.6% after it said that natural disasters would have a negative impact on its operating revenue.

Shares of McDonald's, up 2.6%, are looking at their best daily gain since July 25, with the Dow component contributing 26 points to the benchmark.

Read:These companies are expected to increase sales the most in 2018 (http://www.marketwatch.com/story/these-companies-are-expected-to-increase-sales-the-most-in-2018-2017-09-26)

What are other assets doing?

The ICE U.S. Dollar Index stalled after hitting a one-month high (http://www.marketwatch.com/story/dollar-index-stalls-after-striking-one-month-highs-2017-09-28).

Gold futures fell to a six-week low (http://www.marketwatch.com/story/gold-drops-to-6-week-low-as-dollar-continues-march-higher-2017-09-28), squeezed by dollar strength. Oil futures were pushing higher.

European stocks wavered, with just modest gains for some regional indexes. Asian markets closed mostly lower (http://www.marketwatch.com/story/nikkei-up-but-chinese-stocks-dip-on-profit-taking-ahead-of-holiday-2017-09-27), outside of a 0.4% gain for the Nikkei 225 .

Read:Japan parliament dissolved, snap elections called: report (http://www.marketwatch.com/story/japan-parliament-dissolved-snap-elections-called-report-2017-09-28)

 

(END) Dow Jones Newswires

September 28, 2017 12:04 ET (16:04 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Add a Comment

Try Premium Membership today. Your first 14 days are free of charge. Start my Premium Membership Trial.
Sponsored Links
Buy a Link Now
Sponsor Center
Content Partners