NEW YORK, New York - The Dow Jones hit a new record high on Wednesday while the Nasdaq Composite rebounded from a heavy sell-off a day earlier, but wilted towards the close to finish in the red again.
"With stock indexes at or near record highs and coming off a massive rally in the past year, there's a counterintuitive reaction function to the positive earnings reports to sell the news," Art Hogan, Chief Market Strategist at National Securities in New York, was quoted by Reuters Thomson as saying in a client note.
"We would continue to recommend a diversified equity allocation with a barbell approach that has growth exposure on one end, and economically sensitive cyclical exposure on the other end," Hogan wrote.
At the close on Wednesday, the Dow Jones had forged ahead 97.31 points or 0.31 percent to 34,230.34.
The Nasdaq Composite ended up down 51.08 points or 0.37 percent at 13,582.42.
The Standard and Poor's 500 was flat, rising just 2.93 points or 0.07 percent to 4,167.57.
On foreign exchange markets, gains the greenback made during the Asian session dissipated during European and U.S. trading. The euro edged back to 1.1999. The British pound inched up to 1.3903. The Japanese yen strengthened to 109.22. The Swiss franc firmed to 0.9135.
The Canadian dollar was in demand at 1.2281. The Australian dollar was solidly higher at 0.7740, while the New Zealand dollar reclaimed the half-cent it lost in Asia, to finish in New York Wednesday around 0.7208.
In Europe and the UK, stocks were on fire. The German Dax jumped 2.12 percent. The Paris-based CAC 40 climbed 1.40 percent. In London, the FTSE 100 rose 1.68 percent.
On Asian markets, in Japan, the Nikkei 225 tumbled 241.37 points or 0.83 percent to 28,812.63.
China's Shanghai Composite dropped 28.04 points or 0.81 percent to 3,446.86.
The Hang Seng in Hong Kong shed 139.16 points or 0.49 percent to close at 28,417.98.
In Australia, it was a different story with the All Ordinaries climbing 20.70 points or 0.70 percent to 7,344.20.