Wall Street Mixed; Media Stocks Rise on Dealmaking Prospects

U.S. equities advanced on Tuesday as investor sentiment was supported by the prospects of dealmaking in the media sector.

The Dow Jones industrial average climbed 0.04 percent to 23,557.23, extending a record closing peak. The S&P 500 ended just below breakeven at 2,590.64. The Nasdaq composite dropped 0.4 percent to 6,767.78. The three indexes notched intraday record peaks earlier in the session.

Dealmaking hopes were fueled by news that Disney approached 21st Century Fox on a deal. The two companies have been in talks in recent weeks, but there is no certainty that a deal will get done. Disney gained one percent and was the best-performing stock on the Dow.

Shares of Discovery Communications bounced 1.3 percent and were among the best performers on the S&P 500. CBS also climbed 1.14 percent.

Financial shares dropped as Wells Fargo lost 1.7 percent and Citigroup dropped 1.8 per cent. Shares of JPMorgan were also down by 2.8 percent. The decline in financials comes as the yield curve flattened further for a seventh day in a row.

TripAdvisor and Priceline were the biggest decliners on the S&P 500 after both online travel websites issued quarterly results that raised concerns on their growth prospects.

Solid corporate earnings, along with improving economic data and the prospects of changes to the U.S. tax code, have helped stocks to increase higher since President Donald Trump was elected.

In the first and second quarter of the year, S&P 500 earnings rose 15.5 percent and 10.8 percent, respectively. The current earnings season has also been resilient. According to FactSet, third-quarter earnings have increased 6.3 percent on a year-over-year basis.

News are provided by InstaForex