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GLOBAL MARKETS-Dow hits record; U.S. yields, dollar at multi-year highs

Published 2016-11-23, 11:41 a/m
© Reuters.  GLOBAL MARKETS-Dow hits record; U.S. yields, dollar at multi-year highs
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* Dow hits intraday record high for third straight day

* U.S. healthcare stocks weigh on major U.S. indexes

* U.S. two-year-yields hit 6-1/2-year high

* Dollar index rallies to more than 13-year peak

* Fed minutes to be released at 2 p.m. ET

* Oil prices slightly lower in volatile trade (Updates to open of U.S. trading; changes byline, dateline, pvs LONDON)

By Sam Forgione

NEW YORK, Nov 23 (Reuters) - The U.S. Dow Jones industrial average hit a record high for a third straight day on Wednesday, while U.S. two-year Treasury yields and the dollar hit multi-year peaks after upbeat U.S. economic data reinforced expectations of interest rate increases.

The Dow's peak of 19,066.25 marked its third straight record intraday high, while the benchmark S&P 500 and Nasdaq slipped after touching record intraday and closing highs over the past two days. Expectations that markets would benefit from U.S. President-elect Donald Trump's policies have helped boost shares.

A 0.6-percent drop in healthcare stocks .SPXHC , which had a sharp run higher following the Nov. 8 U.S. election, contributed to the general weakness in U.S. shares, with Eli Lilly LLY.N last down 13 percent ahead of the Thanksgiving Day holiday on Thursday and an early market close on Black Friday. in European industrials and energy shares buoyed stocks in the region, while financials weighed on the STOXX 600 index .STOXX as Italian banks were again under pressure. Europe's basic resources index eased from a 17-month high, but remained up about 1 percent .SXPP .

U.S. two-year Treasury note yields US2YT=RR rose to 6-1/2 year highs of 1.151 percent after data showed that U.S. manufactured capital goods rebounded in October, boosting expectations of faster economic growth. intermediate-dated debt has come under pressure, partly as investors worry that the Federal Reserve may raise rates faster than previously expected. Minutes from the Fed's last policy meeting are set to be released at 2 p.m. ET.

"People are in a holiday mindset today, but nothing appears to be in the horizon to derail the recent market strength," said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.

MSCI's all-country world equity index .MIWD00000PUS was last down 1.34 points, or 0.32 percent, at 412.03.

The Dow Jones industrial average .DJI was up 22.5 points, or 0.12 percent, at 19,046.37. The S&P 500 .SPX was down 5.29 points, or 0.24 percent, at 2,197.65. The Nasdaq Composite .IXIC was off 26.10 points, or 0.48 percent, at 5,360.26. broad FTSEurofirst 300 index .FTEU3 was up 0.12 percent, at 1,345.76.

The dollar index .DXY , which measures the greenback against a basket of six major currencies, surged to a more than 13-year peak of 101.910, bolstered by expectations of interest rate increases by the Fed next month and in 2017. of a December rate hike reached mind-boggling levels," said Lukman Otunuga, research analyst at Forex Time Ltd (FXTM) in Croydon, England. "This could ensure dollar strength remains a key theme moving forward."

Oil prices whipped around on investors' doubts whether OPEC would agree to a production cut large enough to make a significant dent on the global supply glut when it meets next week, and last traded slightly lower. crude LCOc1 was last down 16 cents, or 0.33 percent, at $48.96 a barrel. U.S. crude CLc1 was down 5 cents, or 0.1 percent, at $47.98 per barrel.

Gold slid to a 9-1/2-month low of $1,181.45 an ounce. Spot gold prices XAU= were last down $23.73, or 1.96 percent, at $1,188.13 an ounce.

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