Stocks Build on Gains to Send Dow to Another Record High

The main US markets extended their gains in late trading on Tuesday, sending the Dow Jones Industrial Average to a new record high while the Standard & Poor’s 500 and the Nasdaq Composite rose amid strength in the financials and telecoms sectors.

Among the 30 blue chips on the Dow, 18 ended higher, with 1.2% increases in both Goldman Sachs (GS) and Verizon (VZ) overshadowing the 2.5% decrease in Nike (NKE) after it was cut to neutral from outperform at Cowen. Telecoms gained 1.5% to lead nine of the 11 sectors on the S&P 500 higher, while financials were up almost 1%.

Energy shares ended just lower, down 0.1% on weaker oil prices as Reuters said major producing areas reported production increases and concerns grew about factors that may undermine last week’s OPEC production cut deal. West Texas Intermediate was down about 2% in late trading to $50.71 a barrel, while Brent lost 2.3% to $53.69.

Investors took cues from mixed economic data in the somewhat lackluster session, including factory orders that jumped 2.7% in October, matching analysts’ projections, while September was revised upward to 0.6% from 0.3% previously. However, the US trade deficit was $42.6 billion from a revised gap of $36.2 billion in September. The probability that the Federal Reserve will raise interest rates next week is about 93%, according to the CME Group’s FedWatch tool.

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