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Commercial banks

Market Update: Nasdaq Hits Record, Dow and Other Major Indices Pull Back

Strategic Insights

— 2 min read

The Nasdaq composite continued its relentless march to new heights, closing at a record 2,104.25 and marking its ninth consecutive session at the top. However, the Dow Jones industrial average and other broad-market indexes retreated from record terrain, with the Dow falling 42.22 to 9,295.75. The pullback was largely attributed to profit-taking ahead of this week's Congressional testimony by Federal Reserve Chairman Alan Greenspan. Despite the stumble, the Nasdaq's year-to-date gain stands at a robust 28.3 percent.

Key Takeaways:

  • The Nasdaq composite rose 5.49 to a new record high of 2,104.25, marking its ninth straight record-breaking session.
  • The Dow Jones industrial average fell 42.22 to 9,295.75, retreating from an early foray into record territory.
  • The pullback was largely attributed to profit-taking ahead of Federal Reserve Chairman Alan Greenspan's Congressional testimony.
  • SunTrust Banks Inc. acquired Crestar Financial Corp. in a deal valued at $8.4 billion, creating the 10th-largest bank in the United States with assets of approximately $88 billion.
  • The Amalgamated Transit Union executive board rejected Greyhound Lines Inc.'s latest contract offer, recommending a strike be authorized.
  • Canada's Conrad Black acquired the nation's leading business daily, the Financial Post, to reduce competition for his planned national newspaper.
  • Slamming complaints in Texas dropped 44 percent in the last three months, while total complaints for the first six months of the year remained slightly higher than the same period last year.

Statistics:

  • The Nasdaq composite rose 5.49 to a new record high of 2,104.25.
  • The Dow Jones industrial average fell 42.22 to 9,295.75.
  • The Nasdaq's year-to-date gain is 28.3 percent.
  • The deal between SunTrust Banks Inc. and Crestar Financial Corp. is valued at $8.4 billion.
  • The combined assets of the newly formed bank will be approximately $88 billion.
  • The Amalgamated Transit Union represents about 4,500 Greyhound drivers and 350 mechanics.
  • Slamming complaints in Texas dropped from 33,848 in March to 18,634 in June.

Sources:

  • "NY-Steady, but Nasdaq climbs past Dow", The New York Times
  • "Nasdaq Hits Record, While Dow Pulls Back", Reuters
  • "Nasdaq poised to break Dow", USA Today
  • "Crestar is sold to SunTrust", The Wall Street Journal
  • "Greyhound Lines Inc. contract talks with union stall", Dallas Morning News
  • "Canada's Conrad Black buys Financial Post", The Globe and Mail
  • "Southwestern Bell Telephone Co. reports 44% drop in slamming complaints", Associated Press

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