* Dow comes within 13 points of 20,000 mark
* S&P within 5 points of intraday record high
* Nvidia rises as brokerages increase price targets
* Indexes up: Dow 0.42 pct, S&P 0.38 pct, Nasdaq 0.47 pct
(Adds details, changes comment, updates prices)
By Tanya Agrawal
Dec 20 The Dow and the Nasdaq hit record highs
on Tuesday, with the blue-chip index just 13 points shy of the
20,000 mark, a level it has never scaled.
Goldman Sachs, which was up about 1 percent, gave the
biggest boost to the Dow.
U.S. stocks have been on a tear since the Nov. 8
presidential election, with the Dow up 9 percent and S&P more
than 6 percent on bets that President-elect Donald Trump's plans
for deregulation and infrastructure spending will boost the
"It's just the momentum since the election," said Jeff
Zipper, managing director for investments at Private Client
Reserve at U.S. Bank in Palm Beach, Florida.
"The market is focused on the Trump agenda, which is tax
cuts, infrastructure spending and deregulation. There's not a
lot of selling going on."
However, trading volumes were muted as the last full trading
week before the holiday season gets underway where movements may
There are also concerns that the post-election rally may
have gone too far too soon.
"I think we're a little bit concerned that market trends may
be extended a little bit and market prices need to convert to
fair value, and it's not unusual to see a pullback after such a
move," said Zipper.
The S&P 500 is trading at 17.9 times forward 12-month
earnings, above the 10-year median of 14.7 times, according to
At 11:08 a.m. ET (1608 GMT) the Dow Jones industrial average
was up 83.92 points, or 0.42 percent, at 19,966.98.
The S&P 500 was up 8.69 points, or 0.38 percent, at
2,271.22. The index came within 5 points of its record high.
The Nasdaq Composite was up 25.67 points, or 0.47
percent, at 5,483.11.
Eight of the 11 major S&P sectors were higher, with the
telecommunications index's 0.99 percent rise leading
The financial index was also up 0.93 percent. The
index has risen 18.5 percent since the election, buoyed by
Trump's deregulation plans and the prospect of higher interest
Brent oil prices rose by $1 to a one-week high on forecasts
of a steep draw in U.S. crude stocks that could indicate global
oversupply is starting to shrink.
The dollar climbed to a 14-year high after Federal Reserve
Chair Janet Yellen's comments about the labor market reinforced
the notion of a faster pace of U.S. interest rate hikes next
year than had been expected.
General Mills fell 3.3 percent to $61.00 after the
Cheerios cereal-maker's quarterly results missed expectations.
Nvidia was up 3.9 percent at $105.59 after
brokerages Goldman Sachs and Mizuho raised their price targets
on the chipmaker's stock. The stock was among the big Nasdaq
Advancing issues outnumbered decliners on the NYSE by 1,914
to 901. On the Nasdaq, 1,819 issues rose and 858 fell.
The S&P 500 index showed 29 new 52-week highs and no new
lows, while the Nasdaq recorded 164 new highs and 20 new lows.
(Reporting by Tanya Agrawal in Bengaluru; Editing by Anil
D'Silva and Saumyadeb Chakrabarty)