The Nasdaq hit a new record high on Monday, while the other major U.S. indexes took a break from their post-election rally. Bobbi Rebell reports.
The Nasdaq hit a new record high, but declines in energy and financial stocks weighed on the S&P 500 on Monday and helped stall the Dow's pursuit of the 20,000 milestone ahead of earnings season and U.S. policy changes under Donald Trump. Russell Investments' Stephen Wood: SOUNDBITE: STEPHEN WOOD, CHIEF MARKET STRATEGIST RUSSELL INVESTMENTS (ENGLISH) SAYING: "The fundamentals look ok. We just think that there has been a lot of movement in the market very quickly. Valuations or the price of the market is getting somewhat problematic, so over the course of 1, 2, 3 quarters of being expensive, we just think that valuations are beginning to drag this into more of a sideways chop." The energy sector fell as oil prices slid on concerns that rising Iraqi exports and U.S. output could dampen the impact of a deal among major producers to limit output. Shares of veterinary hospital operator VCA soared after candy and pet food maker Mars said it is buying the company for almost $8 billion. Shares of cancer drug maker Ariad Pharmaceuticals surging on news that Japan's Takeda will buy it for more than $5 billion. Bank of America is being sued by the Federal Deposit Insurance Corp (FDIC) saying the second-largest U.S. bank "refuses to pay" over $542 million in deposit insurance. Lawyers for the bank said they expected to prevail in court. European shares slipped on Monday on a pullback in bank stocks though a drop in the pound drove Britain's FTSE to a record high.