Investors fled high-flying tech stocks and shifted to banks, pulling down the Nasdaq and driving the Dow to a record high. Fred Katayama reports.
Bank stocks and strong economic data lifted the Dow to record territory Wednesday. But a drop in tech stocks dragged down the S&P and Nasdaq. A&G Capital chief investment officer Hilary Kramer: SOUNDBITE: HILARY KRAMER, CHIEF INVESTMENT OFFICER, A&G CAPITAL, (ENGLISH) SAYING: "Basically, investors, we all expect that rates are going to start to rise, so we're looking for the companies that are going to increase in value. That's going to be the banks. The technology companies aren't going to do well in a higher rate environment. So that's why we're all looking for value." Investors also got a dose of strong data. Third quarter GDP was revised upward to a 3.3 percent annual rate. And sales of previously owned homes rebounded in October. Bitcoin topped $11,000. The cryptocurrency gained more than $1,000 in just 12 hours, stoking concerns of a bubble. Banks the leading sector on the S&P with JPMorgan Chase and Bank of America adding on to Tuesday's sharp gains. Chipotle co-founder Steve Ells is stepping down as CEO. That drove up shares of the burrito chain. Tiffany shares gave ground. The upscale jeweler's rising profit and sales topped forecasts in the latest quarter, but its comparable store sales unexpectedly fell. British stocks fell on reports of a breakthrough in Brexit talks, but other European markets rebounded slightly.