November 23, 2016 / 4:41 PM / 2 years ago

US STOCKS-Industrials lift Dow to record, techs drag S&P and Nasdaq

* Industrial index at all-time high on strong data

* Apple top drag on all three indexes

* Juno plunges after two patients die during trial

* Dow up 0.2 pct, S&P down 0.14 pct, Nasdaq down 0.41 pct (Adds details, comments, updates prices)

By Yashaswini Swamynathan

Nov 23 (Reuters) - The Dow hit an all-time high for the third straight day on Wednesday, helped by a surge in industrial stocks, but a drop in technology heavyweights kept the S&P 500 and the Nasdaq firmly in negative territory.

The S&P 500 industrial sector rose 0.52 percent to a record high, helped by a report that showed a strong jump in orders for durable goods in October due to demand for machinery and other equipment.

Caterpillar rose as much as 2.8 percent to a near 2-year high of $96.26. Another boost to the sector was Deere , which rose 10 percent after the farm equipment maker reported a much smaller-than-expected decline in profit.

The industrial sector had risen 6.7 percent since the U.S. election on bets that President-elect Donald Trump’s policies such as higher spending on infrastructure would benefit the industry.

The S&P and the Nasdaq were dragged down by a more than 1 percent decline in index heavyweights Microsoft, Alphabet, Facebook and Apple.

The technology index was down 0.7 percent. Apple was the top drag on all three main Wall Street indexes.

The U.S. dollar surged to a near 14-year high after upbeat U.S. economic data, including a report that showed consumer sentiment this month jumped more than expected in the wake of Trump’s upcoming presidency.

“Whenever you have the type of enthusiasm that we have witnessed over the past couple weeks, the risk for the pendulum to swing the other way is higher,” said Mark Heppenstall, chief investment officer of Penn Mutual Asset Management.

At 11:03 a.m. ET (1703 GMT), the Dow Jones Industrial Average was up 38.97 points, or 0.2 percent, at 19,062.84, near its all-time high of 19,066.25.

The S&P 500 was down 3.17 points, or 0.14 percent, at 2,199.77 and the Nasdaq Composite was down 22.14 points, or 0.41 percent, at 5,364.21.

Seven of the 11 major S&P sectors were lower, led by the real estate sector’s 1 percent drop. Healthcare declined 0.65 percent.

Eli Lilly fell 12.8 percent to $66.26 after the company said it would stop developing its Alzheimer’s drug following a trail failure.

The news dragged down stocks of companies such as Biogen and Axovant that are developing similar drugs.

Juno Therapeutics sank 25 percent after reporting that two patients died during a trial of its leukemia drug.

The minutes of the Federal Reserve’s November meeting will be released at 2:00 p.m. ET and will likely reinforce a plan to raise interest rates next month.

Traders have priced in an 89 percent chance of a hike on Dec. 14, according to Thomson Reuters data.

Trading volumes are likely to remain subdued ahead of the Thanksgiving Day holiday on Thursday and an early market close on Black Friday.

Declining issues outnumbered advancing ones on the NYSE by 1,598 to 1,201. On the Nasdaq, 1,341 issues rose and 1,248 fell.

The S&P 500 index showed 55 new 52-week highs and three new lows, while the Nasdaq recorded 221 new highs and 17 new lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)

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