Dow hits record close, but Facebook weighs on S&P

NEW YORK, Oct 2 (Reuters) - The Dow hit a record closing high on Tuesday, but another drop in Facebook shares weighed on both the S&P 500 and Nasdaq, driving both to finish in the red.

Dividend-paying sectors were the best performers of the major S&P sectors, with utilities up 1.3 percent and consumer staples up 0.6 percent. Facebook, Netflix and Amazon, part of the so-called FANG group of stocks, kept the Nasdaq in check.

The Dow was boosted by names such as Boeing and Caterpillar as investors remained upbeat on trade-sensitive companies following the deal negotiated between the United States, Canada and Mexico.

Related: Trudeau and Trump

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Canada's Prime Minister Justin Trudeau (R) and U.S. President Donald Trump shake hands during the G7 Summit in the Charlevoix town of La Malbaie, Quebec, Canada, June 8, 2018. REUTERS/Christinne Muschi
U.S. President Donald Trump meets with Canada?s Prime Minister Justin Trudeau in a bilateral meeting at the G7 Summit in in Charlevoix, Quebec, Canada, June 8, 2018. REUTERS/Leah Millis
Canada's Prime Minister Justin Trudeau and G7 leaders Britain's Prime Minister Theresa May, France's President Emmanuel Macron, Germany's Chancellor Angela Merkel, and U.S. President Donald Trump discuss the joint communique following a breakfast meeting on the second day of the G7 meeting in Charlevoix city of La Malbaie, Quebec, Canada, June 9, 2018. Adam Scotti/Prime Minister's Office/Handout via REUTERS. ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY.
Germany's Chancellor Angela Merkel, U.S. President Donald Trump, Canada's Prime Minister Justin Trudeau and France's President Emmanuel Macron pose with other leaders for a family photo at the G7 Summit in the Charlevoix city of La Malbaie, Quebec, Canada, June 8, 2018. REUTERS/Yves Herman
Canada's Prime Minister Justin Trudeau (R) and U.S. President Donald Trump participate in the working session at the G7 Summit in the Charlevoix town of La Malbaie, Quebec, Canada, June 8, 2018. REUTERS/Christinne Muschi
U.S. President Donald Trump welcomes Canada's Prime Minister Justin Trudeau on the South Lawn before their meeting about the NAFTA trade agreement at the White House in Washington, U.S. October 11, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump and first lady Melania Trump welcome Canada's Prime Minister Justin Trudeau and his wife Sophie Gregoire Trudeau on the South Lawn before the leaders' meeting about the NAFTA trade agreement at the White House in Washington, U.S. October 11, 2017. REUTERS/Jonathan Ernst
Canada's Prime Minister Justin Trudeau shakes hands with U.S. President Donald Trump as they meet about the NAFTA trade agreement in the Oval Office at the White House in Washington, U.S. October 11, 2017. REUTERS/Jonathan Ernst
(L-R) US President Donald Trump, German Chancellor Angela Merkel and Canada's Prime Minister Justin Trudeau attend the panel discussion "Launch Event Women's Entrepreneur Finance Initiative" on the second day of the G20 Summit in Hamburg, Germany, July 8, 2017. REUTERS/Patrik STOLLARZ/Pool
US President Donald Trump (C) talks with Canada's Prime Minister Justin Trudeau (L) and his wife of Canada's Prime Minister Sophie Gregoire (Hidden behind) as US First Lady Melania Trump (front L) and French President's wife Brigitte Macron (front R) talk with others after a family photo of the participants of the G20 summit and their spouses prior a concert at the Elbphilharmonie in Hamburg, northern Germany, on July 7, 2017. REUTERS/LUDOVIC MARIN/Pool
U.S. President Donald Trump, Germany's Chancellor Angela Merkel and Canadian Prime Minister Justin Trudeau attend the G7 summit in Taormina, Sicily, Italy, May 26, 2017. REUTERS/Tony Gentile TPX IMAGES OF THE DAY
Canadian Prime Minister Justin Trudeau (L) and U.S. President Donald Trump participate in a joint news conference at the White House in Washington, U.S., February 13, 2017. REUTERS/Carlos Barria
Canadian Prime Minister Justin Trudeau (R) is greeted by U.S. President Donald Trump prior to holdiing talks at the White House in Washington, U.S., February 13, 2017. REUTERS/Carlos Barria (
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Facebook fell 1.91 percent, in a third straight session of declines totaling 5.6 percent. The social media company, which on Friday disclosed its worst security breach ever, faces continuing calls for legislation to force technology firms to take responsibilities for online security seriously.

"These are all good companies that have incredibly high valuations so they are susceptible to the flu," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. "It is easy to create fear in these names, given the valuations and this Facebook story, that is bleeding over to these other names."

The Dow Jones Industrial Average rose 122.73 points, or 0.46 percent, to 26,773.94, the S&P 500 lost 1.16 points, or 0.04 percent, to 2,923.43 and the Nasdaq Composite dropped 37.76 points, or 0.47 percent, to 7,999.55.

The NYSE FANG+TM index, an equal-weighted index of five core FANG stocks, was down 4.2 percent for September.

RELATED: Products directly hit by Trump's tariffs on Chinese goods

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Products directly hit by Trump's tariffs on Chinese goods
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Meat: pork; beef intestine; rabbit meat; venison; frog legs
Fish and seafood:live fish including ornamental fish, trout, eels, tuna, and carp; chilled or frozen meat of various types of trout, salmon, halibut, plaice, sole, albacore, tuna, herring, mackerel, cobia, swordfish, pollack, whiting, catfish, rays, and more; various types of salted or smoked fish; other seafood including various types of lobsters, crabs, shrimps, prawns, oysters, scallops, mussels, clams, squid, octopus, conchs, abalone, sea cucumbers, and sea urchins.
Non-meat animal products such as eggs and dairy:Whey products; butter; various types of eggs including chicken; honey; hair of animals including human, hog, horse and badger; animal intestines, bladders; feathers; bones including shells, beaks, corals, hooves, antlers, and more.
Vegetables:onions; garlic; cauliflower and broccoli; cabbage; carrots; turnips; radishes; beats; cucumbers; peas of various types; beans; lentils; celery; mushrooms; peppers of various types; squash; okra; sweet corn; potatoes; sweet potatoes and yams; some types of tomatoes; spinach; Brussels sprouts.
Fruit and Nuts: Coconuts; cashews; almonds; hazelnuts; walnuts; chestnuts; pistachios; macadamia nuts; pecans; dates; figs; pineapples; guavas; oranges; mandarins; clementines; raisins; grapes; apples; pears; quinces; peaches; berries including strawberries, raspberries, cranberries, blueberries and others; bananas; a variety of dried fruits; peels of various fruits.
Cereals: wheat, including durum wheat; barley; oats; corn; various types of rice; grain sorghum; buckwheat; quinoa; and more.
Mill products: flours including those form wheat, corn, buckwheat, rice, rye, other cereals, potatoes, and bananas; groats and meal of various types including wheat, corn, oats, and rice; malt; starches of wheat, corn, potato, and more
Oil seeds: soybeans; seeds of sunflower, flax seed, sesame, mustard, poppy and more; planting seeds for certain crops; cocoas and mint leaves; and seaweeds.
Sugars and candies: cane sugar; candies with no cocoa
Breads and Pasta: uncooked pasta; various breads, pastries, cakes, and biscuits.
Prepared vegetables and fruits: various vegetables and fruits previously listen in their prepared or preserved forms; various fruit jams including strawberry, pineapple, apricot, and more; peanut butter; various fruit juices including orange, pineapple, lime, grape, apple, and more.
Other food items: soy sauce; condiments and seasonings; protein concentrates.
Beverages and vinegars: water, including mineral water; fruit or vegetable juices and juice mixes; beer from malt; wine, including rice wine; ethyl alcohol; vinegars
Food processing waste and animal feed: brans from processing; oil cakes; dog or cat food; animal feed
Tobacco products: various types and preparations of tobacco; tobacco refuse; cigars; cigarettes; smoking tobacco
Salts and minerals: salt/sodium chloride; sulfur; graphite; quartz; types of clays; chalk; slate; marble; granite; sandstone; dolomite; gypsum; some plasters; some types of cement; mica; Epsom salts
Ores, slag, and ash: ores of iron, copper, nickel, cobalt, aluminum, lead, zinc, tin, chromium, tungsten, uranium, titanium, silver, other precious metals, and others; slag, various types of ash.
Mineral fuels and oils: coal; lignite; peat; coke; tars; various types of light oil; various types of kerosene; petroleum oils; liquefied fuels including natural gas, propane, butane, ethylene, and petroleum; oil shale and tar sands
Inorganic Chemicals: chemicals such as chlorine, sulfur; carbon, nitrogen, oxygen, and silicon; acids including sulfuric, nitric, and more; various types of fluorides, chlorides, sulfates, nitrates, carbonates, and more.
Organic chemicals
Fertilizers: animal or vegetable fertilizers; urea; ammonium sulfate; sodium nitrate; and more.
Tanning and drying extracts, dyes, and paints
Essential oils, perfumes: perfume; lip or eye make up preparations; manicure or pedicure products; shampoo; hairspray; bath salts.
Soaps and cleaning products: various types of soap; leather and textile treatments; polishes for shoes and furniture.
Glues, adhesives, and enzymes
Cigarette lighter fluid
Photographic goods: various types of photo plates; instant film; various types of film in rolls; various types of motion picture film.
Various chemical products: pesticides; herbicides; fungicides
Plastics: vinyl flooring and other plastic floor and wall coverings; sausage casings; bags; gloves including baseball gloves; rain jackets; machinery belts.
Rubber: latex; rods, tubes, and other products; conveyor belts; various types of transmission belts; various types of pneumatic tires; gloves; gaskets; dock fenders.
Raw hides and leather: animal skins including cow, buffalo, sheep, goats, reptile; various types of leather made from cow, buffalo, sheep, goats, reptile; leather trunks and suitcases; leather handbags; CD cases; gloves including ski, ice hockey, and typical use; belts; fur clothing, incluidng artificial fur.
Wood: fuel wood; charcoal; various types of wood including oak, beech, maple, ash and cherry; moldings; rods; particleboard; various types of plywood; doors; corks and stoppers; wicker and bamboo baskets.
Wood pulp products
Paper: Newsprint; writing paper; vegetable parchment; carbon paper; self-adhesive paper; cigarette paper; envelopes; tablecloths; handkerchiefs; folders.
Silk
Wool or animal hair products: cashmere; yarns; tapestries and upholstery.
Cotton: fibers; thread; yarn; denim; satin.
Flax: yarn; fabrics
Man-made textiles: polypropylene; rayon; nylon; polyester
Other textile products, rope, twine: hammocks; fish nets; carpets;
Fabrics: corduroy; gauze; terry towel; lace; badges; embroidery
Headgear: caps; hairnets; wool hats; head bands
Stone, plaster, cement, asbestos: stone for art; marble slabs; roofing slate; millstones; sandpaper; floor or wall tiles; cement bricks.
Ceramics: fire bricks; pipes; tiles; porcelain and china.
Glass and glassware: balls; rods; drawn or blown glass; float glass; tempered safety glass; mirrors; carboys, bottles, jars, pots, flasks, and other containers; microscope slides; woven fiberglass
Precious stones and pearls: industrial diamonds; silver and products made of silver; gold and products made of gold; platinum; palladium.
Iron and steel and products derived from the metals:drums; tubes; pipes; doors; windows; screws; horseshoes;
Copper: plates; cables; tubes; pipes; springs
Nickel: bars; rods; wires
Aluminum:powder; cable; wire; screws.
Various metal products, tools, cutlery: industrial items made from lead, zinc, tin, and more; saw blades; bolt cutters; hammers; wrenches; crow bars.
Machinery, both industrial and retail: steam turbines; engines; fuel-injection pumps; air compressors; air conditioning machines; refrigerators; cream separators; hydraulic jacks; escalators; manure spreaders; copiers; automatic beverage-vending machines
Electronics: vacuum cleaners; hair clippers; spark plugs; generators; bicycle lights; electric amps; television cameras; various types of TVs; video projectors.
Vehicles and parts: axles; driving shafts; gear boxes; radiators.
Parachutes

Ships and boats: sailboats; motorboats; canoes; yachts.

Instruments for scientific or medical purposes: microscopes; cameras for non-art purposes; gauges for pressure, electrical currents, and more.
Clocks and watches
Furniture, bedding, mattresses: car seats; wood chairs; furniture designed for offices, kitchens, and more; mattresses; chandeliers; lamps.

Assorted items: buttons; stamps; paintings; collections of zoological, botanical, mineralogical, anatomical, historical, archaeological interest; antiques of an age exceeding one hundred years

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The smallcap Russell 2000 index was off 1.01 percent. Smaller names, which had been viewed as being more insulated to trade pressures, are losing their luster following Sunday's late-night North American trade agreement. The index is now down nearly 5 percent from its Aug. 31 high.

Financials were little changed, shaking off earlier losses stemming from a drop in Italian banks after a senior lawmaker in one of Italy's ruling parties said most of the country's economic problems would be resolved if it readopted a national currency.

"That is really a blip, it definitely doesn’t bleed through to the U.S. financial infrastructure," said Peter Kenny, founder of Kenny’s Commentary LLC and Strategic Board Solutions LLC in New York.

PepsiCo lost 1.80 percent as disappointing margins due to higher commodity and transport costs overshadowed a quarterly profit that beat estimates.

Declining issues outnumbered advancing ones on the NYSE by a 1.54-to-1 ratio; on Nasdaq, a 2.16-to-1 ratio favored decliners.

The S&P 500 posted 20 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 35 new highs and 124 new lows.

Volume on U.S. exchanges was 7.19 billion shares, compared to the 6.93 billion average for the full session over the last 20 trading days.

(Reporting by Chuck Mikolajczak Editing by Susan Thomas and Leslie Adler)

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