Nasdaq rises to new record; energy stocks hold back other indexes

The Nasdaq composite index ticked higher to another record Tuesday, but a drop by energy stocks held other indexes back.

It was the third straight day that the Nasdaq notched an all-time high, but the index has risen only a marginal amount each of those days. Stocks have been stuck in a largely listless trading pattern in recent weeks, as investors see few reasons to make big moves in either direction.

The Nasdaq rose 17.93 points, or 0.3%, to 6,120.59. The Standard & Poor’s 500 index bobbed around its own record through the day, then lost momentum in the last half hour. It closed down 2.46 points, or 0.1%, to 2,396.92.

The Dow Jones industrial average fell 36.50 points, or 0.2%, to 20,975.78. The Russell 2000 index of smaller stocks ticked up 0.22 points, or less than 0.1%, to 1,391.86.

Markets have been placid the last two weeks, and the biggest one-day move for the S&P 500 during that span has been 0.6%, as investors keep crossing off reasons to fear. Last week’s solid jobs report gave reassurance that the U.S. economy is improving despite a weak showing at the start of the year.

Companies have been turning in a slew of stronger-than-expected profit reports, which has tempered concerns that stocks have grown too expensive relative to earnings. And last weekend’s presidential election in France raised confidence that voters may be turning their backs on a nationalistic brand of politics that could hurt global trade.

“This is almost like the post-celebration letdown,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management. “Everyone is just relaxing, trying to figure out what direction to go next.”

It could stay that way for a few days: There are few events on the calendar with market-moving potential.

“We’re in a little bit of a lull here, and I think traders are thinking it’s like a Seinfeld episode where it’s all about nothing,” Jacobsen said.

The day’s biggest excitement involved energy stocks, which deepened their losses for the year. Energy stocks in the S&P 500 sank 0.9%, tied for the day’s biggest drop among the 11 sectors that make up the index. They’re now down 10.8% for 2017, when the S&P 500 is up 7.1%.

The energy sector followed the price of oil lower. Benchmark U.S. crude fell 55 cents to $45.88 a barrel. Brent crude, the international standard, fell 61 cents to $48.73 a barrel.

High-dividend stocks were also weak. Utilities in the S&P 500 lost 0.9%, while telecoms fell 0.6%.

Demand for stocks that pay high dividends has dulled as bonds have begun to pay more in interest. The yield on the 10-year Treasury note held steady at 2.39% on Tuesday, but it’s up from a low of 2.17% three weeks ago.

Marriott International jumped 6.4% to $102.50 after reporting stronger-than-expected earnings for the latest quarter. The hotel operator cited improving trends around the world.

Hertz Global Holdings sank 14.2% to $12.80 after reporting a larger loss for the last quarter than analysts expected.

Pandora Media sank 4.4% to $9.94 after the streaming music company cut its revenue estimate for the year and shook up its board.

Valeant Pharmaceuticals International leaped 24% to $12.05 after the drugmaker reported earnings that investors found encouraging and raised its full-year guidance. The stock is still down 57.1% in the last 12 months.

European stock markets were mostly higher. The German DAX rose 0.4%, the CAC 40 in France gained 0.3%, and the FTSE 100 in London rose 0.6%.

Japan’s Nikkei 225 index fell 0.3%, while the Hang Seng in Hong Kong jumped 1.3%. The South Korean market was closed as voters elected a new president.

The euro fell to $1.0869 from $1.0930. The dollar rose to 114.28 yen from 113.07 yen, and the British pound slipped to $1.2927 from $1.2943.

In the commodities market, natural gas rose 6 cents to $3.23 per 1,000 cubic feet, heating oil fell 1 cent to $1.44 a gallon, and wholesale gasoline fell 3 cents to $1.49 a gallon.

Gold fell $11 to $1,216.10 an ounce, silver fell 19 cents to $16.07 an ounce, and copper was close to flat at $2.50 a pound.

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UPDATES:

2:25 p.m.: This article was updated with closing prices, context and analyst comment.

8:20 a.m.: This article was updated with market prices and context.

This article was originally published at 6:55 a.m.