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US: Nasdaq ends at record on tech, media strength; Dow dips

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[NEW YORK] The Nasdaq jumped to a fresh record on Wednesday, boosted by tech and media shares, while the Dow continued to be weighed down by trade war anxiety.

The tech-rich Nasdaq Composite Index gained 0.7 per cent to 7,781.52.

The Dow Jones Industrial Average shed 0.2 per cent to 24,657.80, while the broad-based S&P 500 added 0.2 per cent at 2,767.32.

Wednesday's trading marked the latest occasion that the Nasdaq has outperformed the other two indices amid sharpening trade rhetoric between the US and China.

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The Nasdaq, along with the Russell 2000, an index of smaller companies that has also done well, "are less likely to be severely impacted by any potential trade wars," said Gorilla Trades strategist Ken Berman.

"However, investors are still concerned about the broader ramifications of a potential trade war," Mr Berman said.

"Many think that the path President Trump is taking is likely a negotiation tactic and the people who still think the trade war will develop believe it would be China that makes concessions. Stay tuned!"

Twenty-First Century Fox shot up 7.3 per cent as Disney raised its bid for core entertainment assets in response to a challenge from Comcast. Disney rose 1.1 per cent and Comcast climbed 1.8 per cent.

Large technology names were also strong, with Facebook winning 2.3 per cent, Microsoft one percent and Amazon 0.9 per cent.

Starbucks slumped 9.1 per cent after announcing it expected just one percent growth in comparable store sales in the third quarter. The coffee giant also announced it was hiking its dividend 20 per cent and closing about 150 stores in the US in 2019.

Software giant Oracle was another big loser, diving 7.4 per cent after projecting earnings of 68 cents per share for the next quarter, four cents below analyst expectations.

AFP

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