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Goldman Sachs' stock drop is holding the Dow down

22 December 2016

Expectations for higher interest rates next year from the U.S. Federal Reserve have sent the dollar higher. Higher yields allow banks to charge more money for loans, so financial firms traded higher.

Goldman Sachs (GS.N), which was up 2.2 percent, gave the biggest boost to the blue-chip index.

Travel website operator TripAdvisor jumped $2.83, or 6.1 percent, to $49.28 after it said it will start adding some Expedia brands to its instant hotel booking platform.

Meanwhile, the $29.88, or 14%, Goldman's stock has climbed since November 22, when the Dow first closed above 19,000, has added about 205 points to the Dow's 938-point gain, to come up about 38 points shy of 20K.

The S&P 500 is up 6% over the period since Trump's win, hitting 2,271 in yesterday's trading, while the Nasdaq has also risen almost 6% to 5,484 points.

The Nasdaq Composite was down 2.26 points, or 0.04 per cent, at 5,481.68.

Gains for banks and travel companies are pulling US stock indexes to record levels on Tuesday.

Shares in Nike were among the winners, up 1% after it reported better than expected sales and profits on Tuesday.

The Dow Jones Industrial Average has been unable to break the 20,000 mark and it appears that investors are taking it easy. They're the worst-performing part of the S&P 500 over the last three months. The Nasdaq composite gained 17 points or 0.3 percent to 5,474. It closed at a record high of 19,974 on Tuesday. Energy companies are slipping with the price of oil. The yield on the 10-year Treasury note slid to 2.55 per cent from 2.60 per cent late Friday.

Energy companies rose. Chevron gained 1 percent.

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