S&P 500, Dow touch over one-week highs after business activity data

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Nov 22 - The S&P 500 and the Dow touched over one-week highs on Friday after data showed a still robust economy, while small-cap stocks outperfomed large-cap indexes.

Keeping a lid on gains on the tech-heavy Nasdaq, Alphabet , dipped 0.9%, following on from Thursday's 4% drop, as the Department of Justice argued to a judge the company was monopolizing online search. "With an economy that's going to broaden out and see earnings growth coming from more of the economic sectors than just IT and communication services, it makes sense to again rotate into those smaller cap and midcap companies and so that puts a little bit of pressure on the larger caps," said Thomas Martin, senior portfolio manager, Globalt Investments.

Expectations on the Federal Reserve's policy move in December have recently swayed between a pause and a cut, as investors weigh the impact Trump's policies can have on price pressures. Among top movers, Gap Inc , jumped 8.7% after the Old Navy parent raised its annual sales forecast and said the holiday season was off to a"strong start".

 

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