(Fixes typo in Tuesday in first paragraph)
* NYSE FANG+TM index hits record high
* Coty drops as demand for makeup products dwindles
* Take-Two tumbles as quarterly sales fall
By Herbert Lash
Feb 9 (Reuters) – The Nasdaq ended at a new closing high onTuesday but the broad market closed slightly lower as investorsrotated out of large-cap tech names into other sectors seen asbenefiting from President Joe Biden‘s proposed $1.9 trillionstimulus bill.
The tech-heavy Nasdaq hit an all-time high for the fifthconsecutive session on early gains in Apple Inc,Amazon.com Inc and Google-parent Alphabet Inc,which later turned lower amid a shift in portfolio allocations.
With the number of U.S. COVID-19 cases falling andexpectations the stimulus package will be approved in Congress,investors are hard-pressed to find significant negatives, saidMichael James, managing director of equity trading at WedbushSecurities in Los Angeles.
“You’re not seeing money coming out of the market and goinginto cash,” James said. “You’re seeing money coming out of onesector and being rotated into another sector to maintain anoverall long bias.”
Largely upbeat corporate earnings, along with monetary andfiscal support, have powered the major U.S. stock indexes torecord highs. But analysts caution the new COVID variants andany glitches in vaccine rollouts could sour positive sentiment.
“The backdrop is largely positive for stocks and I’m notsure there could be a better backdrop for risk assets in thenear to intermediate term,” said William Herrmann, co-founderand managing partner at Wilshire Phoenix in New York City.
Unofficially, the Dow Jones Industrial Average fell10.72 points, or 0.03%, to 31,375.04, the S&P 500 lost4.3 points, or 0.11%, to 3,911.29 and the Nasdaq Compositeadded 20.06 points, or 0.14%, to 14,007.70.
The energy sector, among those that led the recentrally, slipped a bit, while communication servicesrose.
Democrats in the U.S. Senate continue to try to find a wayto include a minimum wage increase in a comprehensive COVID-19relief bill they aim to advance in the coming weeks, SenateMajority Leader Chuck Schumer said on Tuesday.
Toymaker Mattel Inc rose, while telephone equipmentmaker Cisco Systems Inc slipped ahead of reportingearnings after market close.
Analysts forecast a fourth-quarter S&P earnings gain ofabout 2.5%, a stark reversal from the 10.3% annual decline seenat the beginning of the year, per Refinitiv.
Gucci lipstick maker Coty Inc tumbled as weakdemand for makeup products wiped millions off its quarterlyrevenue.
Take-Two Interactive Software Inc fell after thevideogame publisher posted a drop in quarterly adjusted salesand shied away from announcing any new big releases.
Bitcoin fast approached the $50,000-mark as theafterglow of Elon Musk-led Tesla‘s investment in thecryptocurrency had investors reckoning it may become amainstream asset class for both corporations and money managers.
Cryptocurrency miner Riot Blockchain and MarathonPatent Group extended sharp gains for the second day,but Tesla‘s shares dropped.(Reporting by Herbert Lash, with additional reporting by MedhaSingh and Devik Jain in Bengaluru; Editing by Maju Samuel andDan Grebler)