Nasdaq hurt by profit taking, but data lifts Dow, S&P
The Nasdaq fell on Wednesday, weighed down by profit taking in shares of bellwether names, including Apple, but the Dow and S&P 500 were near breakeven, helped by reassuring news on the labor market and Walt Disney Co's better-than-expected profit.
A rise in bank shares also cushioned the broader market as investors bet that bank capital shortfalls will be manageable.
Shares of Apple
The tech sector was one of the few to suffer the least in the market's plunge to 12-year lows in early March and has also served as a major underpinning of the market's rebound from that significant trough.
Tech has been a major driver of the market's strength, so it's really not a surprise to see people taking some profits, said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles. In the banks, people are looking past the negatives right now.
The Dow Jones industrial average <.DJI> rose 24.13 points, or 0.29 percent, to 8,434.78. The Standard & Poor's 500 Index <.SPX> added 3.69 points, or 0.41 percent, to 907.49. The Nasdaq Composite Index <.IXIC> was down 15.06 points, or 0.86 percent, at 1,739.06.
In economic news, data showed private sector job losses slowed in April, coming in below expectations and providing further fuel for optimism the U.S. economy has seen the worst.
Shares of major banks advanced, sending the KBW Bank index <.BKX> up more than 7 percent. About 10 of the 19 institutions under review may need more capital, a person familiar with official talks has said. The results are expected to unveiled on Thursday.
The results that are coming tomorrow are priced in, said John Schloegel, vice president of investment strategies for Capital Cities Asset Management in Austin, Texas.
There must be enough tiers of preferred stock they can convert to equity, and perhaps they don't necessarily need to tap external sources for capital.
Walt Disney Co
(Additional reporting by Ellis Mnyandu ;Editing by Padraic Cassidy)
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