Dow edges to record, but Nasdaq winning streak ends

Dec 28, 2019: The Dow finished at a fresh record on Friday following a sleepy session, but the Nasdaq declined, ending a streak of 10 straight records.

The tech-rich Nasdaq Composite Index finished down 0.2 percent at 9,006.62.

But the Dow Jones Industrial Average climbed 0.1 percent to 28,645.26, its second straight record. The broad-based S&P 500 ended essentially unchanged at 3,240.02.

Analysts have attributed the latest run of records to upbeat investor sentiment based on a lower risk of recession in the immediate future, a mellowing of US-China trade tensions and accommodative monetary policy.

Stocks have followed a nearly unbroken line upward since early October, drifting higher much of this week amid low trading volumes in the period between the Christmas and New Year's holidays.

"It's a market that's gotten used to the fact that a lot of the things that were concerning last year feel better this year," said Art Hogan, chief market strategist at National Securities.

Still, some market watchers expect a pullback in the foreseeable future in light of the market's nearly unbroken run higher. Stocks have risen to higher-than-normal valuations as a result of the run.

Analysts say such a retreat would be natural due to technical trading factors, although it could also be sparked by an unexpected negative news event, such as a sharpening of US-China trade tensions.

Among individual companies, The Michaels Companies surged 32.9 percent as it announced that Walmart e-commerce executive Ashley Buchanan would join the arts, crafts and framing retailer as chief executive in January.

AFP/APP