By Wallace Witkowski, MarketWatch , Ryan Vlastelica
Nasdaq lags behind as biotechs suffer
Dow industrials and the S&P 500 notched a third straight record close on Wednesday, boosted in part by industrials, while the Nasdaq lagged behind in trading ahead of the Thanksgiving Day holiday.
The Dow Jones Industrial Average rose 59.31 points, or 0.3%, to close at 19,083.18, after hitting an intraday record of 19,083.76.
The S&P 500 , which had been in negative territory for most of the session, advanced 1.78 points, or less than 0.1%, to finish at a record 2,204.72, its session high, led by 0.8% gains in both the industrials and telecom sectors. It's the third session in arow both the Dow and the S&P 500 have turned in record closes.
The small-cap Russell 2000 index also closed at a new high of 1,341.99, a gain of 0.6%, extending its winning streak to a 14th consecutive session.
Bucking the positive tone, the Nasdaq Composite Index declined 5.67 points, or 0.1%, to finish at 5,380.68, pressured by a drop in biotech stocks.
Stocks have accelerated a rally since Republican nominee Donald Trump's presidential election victory on Nov. 8. The move has also seen a heavy rotation out of defensive stock-market sectors into more cyclical segments.
"The prospect of a unified U.S. government pursuing a pro-growth agenda through deregulation, tax reform, and fiscal stimulus seems to be driving current trends. Such an environment should be relatively favorable to growth stocks and to smaller-capitalization stocks with less exposure to the negative effects of a strong U.S. dollar," wrote analysts at Guild Investment Management, in a Thursday note.
Read:Stock market's record November shouldn't scare off Santa Claus (http://www.marketwatch.com/story/stock-markets-record-november-points-to-strong-december-2016-11-23)
Stocks barely budged after the Federal Reserve released minutes from its November meeting, but the Dow gradually skewed upward and the S&P 500 swung to a slight gain heading in to the close. The Fed minutes showed that policy makers agreed an interest-rate increase may be appropriate relatively soon (http://www.marketwatch.com/story/fed-indicated-rate-hike-could-come-relatively-soon-fomc-minutes-show-2016-11-23).
That was no surprise to the market. A December rate increase is seen as a virtual lock (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html) by investors, according to CME Group's FedWatch tool.
The Nasdaq saw outsize losses due to weakness in the biotech sector, which slumped following some negative drugtrial results. Equities overall also saw some pressure from the stronger U.S. dollar , which drove a closely tracked index of the currency's strength to a 13-year high (http://www.marketwatch.com/story/dollar-becalmed-as-holiday-mood-hits-markets-2016-11-23). A stronger dollar can erode the profits of multinational companies.
See:Don't blame the dollar when the Trump rally gets smashed (http://www.marketwatch.com/story/trump-rally-has-99-problemsbut-the-dollar-isnt-one-in-a-chart-2016-11-22)
The U.S. stock market will be closed on Thursday and will close early on Friday (http://www.marketwatch.com/story/heres-when-markets-close-on-black-friday-2016-11-18). Many traders and other market participants will be out for the holiday, which could mean a quieter market, although the lighter volume could also leave it susceptible to bigger swings if unexpected headlines occur.
Opinion:Why the Dow at 19,000 is no cause for celebration (http://www.marketwatch.com/story/dow-19000-is-no-cause-for-celebration-2016-11-22)
Investors sifted through a deluge of economic data. Durable goods surged 4.8% in October (http://www.marketwatch.com/story/durable-goods-orders-see-jet-fueled-48-gain-in-october-2016-11-23), in large part due to strong demand for commercial aircraft. Separately, the number of Americans applying for jobless benefits rose more than expected in the latest week (http://www.marketwatch.com/story/jobless-claims-jump-18000-to-251000-2016-11-23), although the increase comes just one week after claims dropped to a 43-year low.
Read: Tom DeMark now sees 5%-6% retreat for stock markets in wake of Trump rally (http://www.marketwatch.com/story/tom-demark-now-sees-5-6-retreat-for-stock-market-in-wake-of-trump-rally-2016-11-22)
Stocks to watch:Eli Lilly(LLY) shares closed down more than 10% after the company said its Alzheimer's drug failed (http://www.marketwatch.com/story/eli-lilly-shares-slide-premarket-after-company-says-alzheimers-drug-trial-failed-2016-11-23). The decline was part of a broader fall in health care names. The iShares Nasdaq Biotechnology ETF (IBB) finished up 0.4% following an earlier decline.
Exclusive:T-Mobile's accounting slammed by investor group in letter to SEC (http://www.marketwatch.com/story/t-mobiles-accounting-slammed-by-investor-group-in-letter-to-sec-2016-11-23)
Also weighing on the biotech sector was Juno Therapeutics Inc.(JUNO), which closed down more than 24% after the company said two patients in its cancer trial had died (http://www.marketwatch.com/story/juno-therapeutics-halts-midstage-clinical-trial-after-patient-death-2016-11-23).
Deere & Co.(DE) rallied 11% after profit and sales beat expectations. (http://www.marketwatch.com/story/deeres-stock-surges-after-profit-and-sales-beat-expectations-2016-11-23)Deere's results helped lift Caterpillar Inc.(CAT) 2.7%. The heavymachinery maker was the top gainer among Dow components (http://www.marketwatch.com/story/caterpillars-stock-leads-dow-gainers-after-peer-deeres-blowout-results-2016-11-23).
Hewlett Packard Enterprise Co.(HPE) and HP Inc.(HPQ) both reported earnings (http://www.marketwatch.com/story/hewlett-packard-revenues-shrink-just-like-the-company-2016-11-22) late Tuesday. Shares of Hewlett rose 3% while HP shares tumbled 6.8%.
Read:Hewlett-Packard revenues shrink, just like the company (http://www.marketwatch.com/story/hewlett-packard-revenues-shrink-just-like-the-company-2016-11-22)
Urban Outfitters Inc.(URBN) shares fell 12% after an earnings miss (http://www.marketwatch.com/story/urban-outfitters-shares-slip-after-earnings-miss-2016-11-22).
Other markets: European stocks were largely weaker, while the FTSE-100 index (http://www.marketwatch.com/story/commodity-stocks-pull-ftse-100-higher-once-again-2016-11-23) ended up 0.6%.
Oil prices fell slightly (http://www.marketwatch.com/story/oil-prices-pull-back-as-investors-await-developments-ahead-of-opec-meeting-2016-11-23), settling down 0.2% at $47.96 a barrel, on the day after U.S. inventory data from the Energy Information Administration showed a rise in stockpiles, a negative sign for demand. However, crude prices have been buffeted ahead of next week's meeting of the Organization of the Petroleum Exporting Countries.
Read:How an OPEC output deal could catapult U.S. producers back to stardom (http://www.marketwatch.com/story/how-an-opec-output-deal-could-catapult-us-producers-back-to-stardom-2016-11-23)
Gold prices (http://www.marketwatch.com/story/gold-rally-fizzles-as-dollar-surges-on-strong-economic-data-2016-11-23) settled down 1.8% at $1,189.30 an ounce, hurt by the rise in the dollar The SPDR Gold Trust(GLD) fell sharply on the day (http://www.marketwatch.com/story/gold-etf-has-another-day-of-pain-falls-to-lowest-since-february-2016-11-23), continuing a recent downtrend.
--Barbara Kollmeyer in Madrid contributed to this report.
(END) Dow Jones Newswires
November 23, 2016 16:47 ET (21:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.