Nasdaq makes new record close as markets pause rally
On Tuesday, New York and Toronto indices took a break from their recent rally by giving back some gains. The Dow shed 1.09%, the S&P was down 0.78% and the TSX sold off 0.66%. Reversing the trend, cyclicals and value stocks cooled off with the Russell 2000 closing -1.94%.
The biggest laggard was energy, which tumbled 3.59% in the States and lost 3.11% here. In surprising news, ChesapeakeEnergy, once worth US$37.5 billion, plummeted nearly 66% after announcing it may seek bankruptcy protection. Better news was found in tech, with Apple (up 3.16%) and Amazon (3.04%) making record closes. But Tuesday’s biggest winner was the entire Nasdaq which made a record close after touching 10,000 during the session. The tech index climbed 0.29%.
Though some Canadian energy stocks like Husky (down 7.54%) fell on Tuesday, a barrel of WCS actually rose 3%. Gold stocks rallied with New Gold popping 10.49%. Concerns about office space weighed down on REITS like Dream Office, which fell 4.46%. The overall real estate spaced lost 2.58% while the only sector closing in the green were materials, up 1.05%. Tuesday’s session was considered a pause and not a reversal of the rally, even though some investors worry that the markets are overbought.