Dow ends at record again, but tech sell-off hits Nasdaq

Photo source: AFP

The mixed-bag outcome came as the Commerce Department said the US economy in the third-quarter expanded by 3.3 per cent, the strongest performance since the third quarter of 2014 and better than the initial estimate.

The Dow Jones Industrial Average ended the day rising 103.97 points (0.44 per cent) to 23,940.68, beating Tuesday's record finish.

The broad-based S&P 500 slipped 0.97 points (0.04 per cent) to end at 2,626.07, while the tech-rich Nasdaq Composite Index sank 88.02 points (1.27 per cent) to 6,824.34.

Analysts described Wednesday's trading as a rotation, with a sell-off among sought-after names such as Apple, Amazon, Google-parent Alphabet and Facebook, all of which fell two per cent or more.

At the same time, financial shares such as JPMorgan Chase, Bank of America and Wells Fargo added at least two per cent.

Beaten-down retail shares also prospered, with Macy's surging 8.2 per cent, Nordstrom 7.2 per cent and Target 8.9 per cent. Early figures based on the "Black Friday" holiday shopping weekend suggest the gift-giving season has opened well for retailers.

Transportation shares also were flying, with Delta Air Lines winning 3.0 per cent, United Continental 3.2 per cent and freight rail company CSX 4.8 per cent.

But American Airlines added just 0.1 per cent following news that a scheduling snafu left it short of pilots on more than 15,000 flights during the key holiday travel period. The airline said it expects to avoid cancellations by paying reserve pilots up to 150 per cent of their hourly rate.

Tiffany jewelers, of the distinctive turquoise blue box, dropped 1.6 per cent after reporting third-quarter net earnings rose five percent to US$100 million, while comparable store sales were flat.

Chipotle Mexican Grill jumped 5.6 per cent after announcing it has launched a search for a new chief executive and that founder Steve Ells would step down from the post. The restaurant chain has stumbled badly with food safety problems over the last couple of years.