Published: Wed, May 10, 2017
Economy | By Melissa Porter

S&P, Nasdaq hit record highs as volatility drops

S&P, Nasdaq hit record highs as volatility drops

Eastern time. If it remains up for the day, it would mark the third straight session where it's set an all-time high. Stocks have been stuck in a largely listless trading pattern in recent weeks, as investors see few reasons to make big moves in either direction.

Telecom stocks in the S&P 500 fell 0.5 percent.

On the S&P 500, the energy sector posted a 0.8% loss as West Texas Intermediate, the main USA crude oil variety, fell about 1% to $45.98 a barrel. Despite the choppy trading, the Nasdaq and the S&P 500 inched up to new record closing highs. Small-company stocks fell, and the Russell 2000 index lost 5.36, or 0.4 percent, to 1,391.64.

Since Donald Trump's election in November the S&P 500 has risen almost 14 percent, raising questions about market valuations.

MARKETS ABROAD: The French CAC 40 fell 0.9 percent, but that follows a 7.4 percent surge in the preceding two weeks, when investors sent French stocks higher in anticipation of a Macron victory.

The Nasdaq is up 19.83 points, or 0.3 percent.

European stock markets were mostly higher, and the German DAX rose 0.4 percent. The VIX measures how much investors are paying to protect themselves from upcoming swings in the S&P 500, and it has been on a general trend downward since shortly before Election Day.

The Nasdaq is up 737.47 points, or 13.7 percent.

Elsewhere, shares of Kate Spade jumped 8.31% after bigger rival Coach Inc said it would buy the handbag maker for $2.4 billion to increase its exposure to millennial shoppers.

On the other hand, shares of Newell Brands (NWL) moved sharply higher after the household products maker reported better than expected first quarter results and raised its full-year guidance.

Japan's Nikkei 225 index fell 0.3%, while the Hang Seng in Hong Kong jumped 1.3%. The South Korean market was closed as voters elected a new president. The 10-year Treasury yield rose to 2.41 percent from 2.39 percent late Monday.

COMMODITIES: Benchmark U.S. crude fell 36 cents to $46.07 per barrel.

The euro fell to $1.0869 from $1.0930. Brent crude, the global standard, fell 61 cents to $48.73 a barrel. The dollar rose to 114.28 yen from 113.07 yen, and the British pound slipped to $1.2927 from $1.2943.

Natural gas rose 3 cents to $3.21 per 1,000 cubic feet, heating oil fell a penny to $1.45 per gallon and wholesale gasoline slipped 1 cent to $1.51 per gallon.

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