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Overnight Markets: Dow and S&P 500 close at record highs again
by Himanshu Singh on May 14, 2014 at 03:36
The Dow Jones and the S&P 500 closed at record highs again on Tuesday, while the Nasdaq declined further, dragged down by Cisco shares.
The Dow Jones industrial average rose 20 points or 0.12%, to 16,715, its third straight record closing high. The Dow also set an intraday record at 16,736.
The S&P 500 gained one point or 0.04%, to 1,897, its second straight record closing high. The S&P 500 also advanced during the session to 1,902, a lifetime intraday high. The Nasdaq Composite dropped 14 points or 0.33%, to 4,130.
Homebuilders' shares gained and the common stock of mortgage finance giants Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) jumped as Federal Housing Finance Agency Director Mel Watt laid out new policies that could make it easier for many Americans to obtain mortgages. Fannie Mae jumped 7.8% while Freddie Mac advanced 6.9%.
Among homebuilders, the stock of D.R. Horton Inc (DHI.N) rose 2.2%.
Cisco Systems Inc (CSCO.O), set to report results on Wednesday, was the biggest drag on the Nasdaq. The stock slid 1.4%.
In deal news, Keurig Green Mountain Inc (GMCR.O) became the S&P 500's biggest percentage gainer, up 7.6%, after Coca-Cola Co (KO.N) said it will raise its stake in the company, the maker of the popular Keurig one-cup coffee brewer, to 16% from 10%.
DirecTV (DTV.O) shares slipped 1.2% a day after sources told Reuters that AT&T Inc (T.N) was in active talks to buy the company in a deal that could be worth close to $50 billion. AT&T's stock dropped 1%.
In the latest economic data, retail sales rose 0.1% in April, less than expected, though the March reading was revised upward.
In Asia, shares gained on Wednesday in late morning trade after US equity gauges held at record highs and investors weighed earnings.
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