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US stocks close higher on ECB policy scale back but off record peaks

Last updated: 16:34 08 Dec 2016 EST, First published: 03:57 08 Dec 2016 EST

US stocks index trio books a fresh record high

US stocks closed higher on Thursday but off fresh intraday record highs.

For once, commentary from US President-elect Donald Trump was not the cause for the rally on Wall Street. Part of the spur for the rally was news that the European Central Bank was to scale back its quantitative easing programme in April – even as it stunned investors by extending the period of activity further than expected to December next year.

The market bellwether S&P 500 closed up 0.2% at 2246, off its record high during the day, and led by Edwards Lifesciences Corp (NASDAQ:EW), up 6.7% to $89.30. Read more.

The Nasdaq Composite, which also hit a record high intraday, ended up 0.4% at 5417. The Dow Jones Industrial Average, similarly a record-breaker, ended 50 points off the peak, up 0.3% at 19,614.

The S&P Midcap 400 also hit a record and ended just shy, up 1.1% at 1696 and led by  Ciena Corp (NYSE:CIEN) up 15.1% at $24.87.

Another record-breaker was the S&P Smallcap 600, up 1.7% at 855 and led by Tailored Brands Inc (NYSE:TLRD), up 40% at $26.44.


Early trading

US stocks marked fresh record highs intraday on Thursday, with the Nasdaq, Dow Jones and S&P 500 making the grade alongside mid-caps and small-caps.

The Nasdaq Composite became the latest Wall Street gauge to hit a historic high, as a rally in European stocks following the European Central Bank’s decision to scale back its quantitative easing programme – even as it stunned investors by extending the period of activity further than expected to December next year - which helped to bolster US equity markets.

The Nasdaq hit 5,405 shortly after the opening bell in New York, surpassing its November 29 intraday high of 5,403.86. It was last up 0.2% at the record high of 5,405.39.

The Dow hit a record high of 19,592.95 and was last up 0.06% at 19,562, while the S&P 500 hit a record high of 2,244.03 and was last up 0.08% at 2243.

Costco shares rose 4.3% to $160.55 and the third-biggest gainer on the S&P 500 – and that despite missing first quarter 2017 earnings forecasts.

But the top riser was Edwards Lifesciences Corp (NYSE:EW), up 7.3% to $89.85 after the company released bullish earnings guidance for 2017 – a tonic after Wednesday’s rout of health care and pharma stocks following US President-elect Donald Trump’s remarks that he would force down drug prices.

Meanwhile the Nasdaq biotechnology index, which fell almost 3% on Wednesday after Trump said in a magazine interview that he will bring down drug prices, continued its decline.

The S&P Midcap 400 was up 0.7% at 1689, a fresh record high and led by Advanced Micro Devices (NASDAQ:AMD), up 9.3% to $10.45 on rumours that AMD might license its graphics IP to Intel Corporation (NASDAQ:INTC) for inclusion in upcoming Intel CPUs. Intel shares were up 0.4% at $35.63.

But the best gains were among small-caps. The S&P 600 was up 1.1% at 850 – a fresh record high – and led by Tailored Brands Inc (NYSE:TLRD), up 41.2% at $26.72 after Tailored Brands, the parent of Men's Wearhouse, said it made progress in improving the performance of its struggling Jos. A. Bank business.

The company also reported better sales than expected as well as a larger profit. The stock soared $8.34, or 44.1 percent, to $27.27. A year and a half ago it was trading around $60, but it has tumbled the company tried to reduce Jos. A. Bank's dependence on discounts.


Pre-Open

US stocks were poised to open firmer but rangebound on Thursday, sitting on the fence as oil prices perked up after several days of decline, yet still set to mark a fresh Trump-inspired record high.

The S&P 500 future indicated the market bellwether would open up 0.05%. On Wednesday the S&P 500 rose 1.3% to a fresh record high close of 2,241.35, its biggest one-day gain since November 7, while the Dow Jones Industrial Average rose 1.6%, adding nearly 300 points to hit a record closing high of 19,549.62.

In fact, the Dow has climbed a stunning 1,200 points in the month since Donald Trump's election victory led investors to sense a business-friendly agenda for the new head of state. The index is now within striking distance -- roughly 500 points -- from the 20,000 point milestone.

The US oil benchmark West Texas Intermediate was up 0.7% at $50.12 after some takeover news excited a market still anxious about whether OPEC can deliver a supply cull.

Russia is selling off an $11bn stake in state oil giant Rosneft to Qatar and the Anglo-Swiss miner Glencore (LON:GLCNF, OTC: GLNCY). The consortium is buying 19.5% stake in the company, while Russia will retain a controlling stake.

Glencore’s ADRs will be watched on Wall Street. They closed up 3% at $7.47 on Wednesday.

Holding the bourse back potentially, Sears Holdings (NASDAQ:SHLD) posted its weakest quarterly sales in 12 years, highlighting the woes for once-prominent US department store chains.

The Illinois-based company said its revenues fell 12.5% from the previous year to $5.03bn in the quarter ending on October 29. That represented the lowest sales since the same quarter in 2004.

Sears shares were down 3.5% at $11.70 pre-market.

US weekly initial jobless claims were 258,000, bang on forecast and down from 268,000 the previous week.

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