US: Dow closes at record as market applauds Trump Treasury pick

THE Dow finished at a second straight record on Monday, opening a holiday-shortened week with a flourish as investors applauded President-elect Donald Trump’s pick for Treasury secretary.

All three major indices climbed on news of the selection of hedge fund manager Scott Bessent to lead the critical economic policy position.

The Dow Jones Industrial Average led the indices, climbing one per cent to finish at an all-time high of 44,736.57.

The broad-based S&P 500 advanced 0.3 per cent to 5,987.37, while the tech-rich Nasdaq Composite Index also gained 0.3 per cent to 19,054.84.

The market “breathed a sigh of relief” at Bessent’s selection, said Art Hogan from B. Riley Wealth Management.

But after an initial surge, the gains in equities moderated somewhat.

While investors are enthusiastic about the possibility of tax cuts and regulatory relief under Trump, “we do have to face the potential for tariffs being a negative as well as a very tight market around immigration, which is not positive for the economy,” Hogan said.

In addition, markets are looking ahead to a fairly heavy couple of days of earnings and economic news before Thursday’s Thanksgiving holiday.

The calendar includes Wednesday’s reading on personal consumption pricing, a key inflation benchmark affecting the upcoming monetary policy decision.

Among individual companies, Macy’s fell 2.3 per cent as it reported preliminary results that included a 2.4 per cent drop in sales to US$4.7 billion.

The department store delayed the release of full earnings after a forensic investigation found an employee hid up to US$154 million in delivery expenses starting in the fourth quarter of 2021 through early November.

Bath & Body Works surged 16.5 per cent after the retailer raised its full-year projections following quarterly earnings that exceeded its forecast. AFP