* Pfizer falls after being fined for drug pricing
* Nasdaq biotech index set for worst day in two months
* Western Digital top gainer on S&P after results
* Dow up 0.08 pct, S&P up 0.09 pct, Nasdaq down 0.04 pct
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
Dec 7 The S&P 500 and the Dow hit record
intraday highs on Wednesday, helped by gains in bank stocks, but
President-elect Donald Trump's comments on drug prices slammed
the healthcare sector, pulling down the Nasdaq.
Trump, in an interview with the Time magazine, said he would
bring down drug prices.
The S&P 500 healthcare index swiftly lost nearly 2
percent, while the Nasdaq Biotechnology index dropped 3.8
percent - set for its worst day in nearly two months.
Trump's effect was also seen on Tuesday, with Boeing's
stock falling after his tweet that an order for a
revamped Air Force One plane should be canceled as it was too
"I think it is a new fact of life going forward, that
fundamentals can be swept aside any day by comments from the
(President-elect)," said David Donabedian, chief investment
officer of Atlantic Trust Private Wealth Management.
Pfizer's shares fell 2.7 percent to $30.70 after Britain's
competition watchdog fined the drugmaker $107 million for its
role in ramping up the cost of an epilepsy drug by as much as
Nine of the top 10 stocks weighing on the S&P 500 were
drug-related, with Johnson & Johnson and Pfizer having
the biggest impact.
The healthcare sector caught a bid in the post-election
rally following the defeat of Democrat nominee Hillary Clinton,
who had been vocal about drug pricing. However, Trump's comments
on Tuesday add fresh uncertainty to the industry.
At 10:57 a.m. ET (1604 GMT), the Dow Jones industrial
average was up 15.24 points, or 0.08 percent, at
19,267.02. It hit a record of 19,276.25.
The S&P 500 was up 2.02 points, or 0.09 percent, at
2,214.25, slightly below its all-time high of 2,214.74.
The Nasdaq Composite was down 2.26 points, or 0.04
percent, at 5,330.74.
Nine of the 11 major S&P 500 sectors were higher, led by a
1.2 percent gain in real estate.
Financial stocks rose 0.4 percent, their third
straight day of gains, giving the broader index its biggest
While an interest rate hike at the Federal Reserve's meeting
next week is a foregone conclusion, investors are on the lookout
for how the central bank views Trump's pro-growth policies and
whether that could lead to more aggressive rate hikes next year.
Celgene lost 3.4 percent to $113.55 following its
announcement that it would not further test a combination of its
breast cancer drug Abraxane with chemotherapy.
Western Digital rose 4.8 percent to $67 after the
data storage maker raised its second-quarter profit and revenue
forecasts. The stock was the top percentage gainer on the S&P.
Advancing issues outnumbered decliners on the NYSE by 1,974
to 842. On the Nasdaq, 1,461 issues rose and 1,173 fell.
The S&P 500 index showed 50 new 52-week highs and six new
lows, while the Nasdaq recorded 172 new highs and 18 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by
Sriraj Kalluvila and Saumyadeb Chakrabarty)