US STOCKS-U.S. stocks close mixed as Dow notches fifth straight record high

* The Nasdaq and S&P 500 post best week in five
* Benchmark 10-year bond yield hits one-year high
* Ulta Beauty slumps as revenue forecast disappoints
* Dow gains 0.90%, S&P rises 0.10%, Nasdaq falls 0.59%

(Adds closing prices, market details)
By Herbert Lash
NEW YORK, March 12 (Reuters) - The blue-chip Dow powered to
its fifth consecutive record high on Friday and the S&P 500
closed slightly higher as investors bought shares that should
benefit from a strong reopening of the U.S. economy, an outlook
signaled by rising yields in the bond market.
The tech-heavy Nasdaq tumbled after rebounding more than 6%
over the past three sessions as the rising bond yields revived
inflation worries and dulled the appeal of high-growth
technology shares.
The S&P 500 and Nasdaq posted their biggest weekly
percentage gains since early February after President Joe Biden
signed into law on Thursday one of the largest U.S. fiscal
stimulus bills and data reinforced convictions the economy was
headed to a high-growth recovery.
The recent rise in U.S. Treasury yields has raised fears of
a sudden tapering of monetary stimulus and put downward
pressure on Wall Street in recent weeks.
The yield on the benchmark 10-year note US10YT=RR hit
1.642% on Friday, the highest level since February of last year.
US/
Boeing Co BA.N rose 6.82% to lead the Dow and S&P 500
higher. The rising Dow and tumbling Nasdaq reflect an ongoing
sell-off in tech as investors buy cyclical and underpriced value
stocks that are expected to do well as the economy recovers.
For tech stocks to continue to flourish you need low rates,
and in effect slower growth, said Thomas Hayes, chairman and
managing member of hedge fund Great Hill Capital LLC.
But with the stimulus package the economy is likely to
expand 7% to 9% this year and pressure interest rates, he said.
"That's why you're seeing rates rise today because the
reopening is happening faster and stronger than anticipated. And
that's when value and cyclicals and economically sensitive
stocks outperform," Hayes said.
The speedy distribution of vaccines and more fiscal aid have
spurred concerns of rising inflation despite assurances from the
Federal Reserve to maintain an accommodative policy. All eyes
will be on the central bank's policy meeting next week for
further cues on inflation.
U.S. consumer sentiment improved in early March to its
strongest in a year, a survey by the University of Michigan
showed on Friday. The Dow Jones Industrial Average .DJI rose 293.05 points,
or 0.9%, to close at 32,778.64 and the S&P 500 .SPX gained 4
points, or 0.10%, to 3,943.34. The Nasdaq Composite .IXIC
dropped 78.81 points, or 0.59%, to end at 13,319.87.
For the week, the S&P rose 2.6%, the Dow added 4.1% and the
Nasdaq gained 3.1%. For the Dow it was its biggest weekly gain
since November.
Volume on U.S. exchanges was 11.64 billion shares.
The Nasdaq has been particularly hit by the sell-off in
recent weeks and confirmed a correction at the start of the week
as investors swapped richly valued technology stocks with those
of energy, mining and industrial companies that are poised to
benefit more from an economic rebound.
Value stocks .RLV added about 0.80%, while growth stocks
.RLG slumped 0.62% in a continuation of a rotation that began
late last year.
The high-flying but yield-sensitive group of stocks
including of Facebook Inc FB.O , Apple Inc AAPL.O , Amazon.com
Inc AMZN.O , Netflix Inc NFLX.O , Google-parent Alphabet Inc
GOOGL.O , Tesla Inc TSLA.O and Microsoft Corp MSFT.O , which
fueled the past's year rally, fell.
Tech .SPLRCT , communication services .SPLRCL and
consumer discretionary .SPLRCD indexes, which house these
mega-cap stocks, slipped the most among major S&P sectors.
The bank index .SPXBK jumped 1.83%, while financials
.SPSY and industrials .SPLRCI clinched new record levels.
Ulta Beauty Inc ULTA.O fell 8.4% after the cosmetics
retailer forecast annual revenue below estimates, as demand for
make-up products were under pressure due to extended
work-from-home policies. U.S.-listed shares of China-based JD.com Inc JD.O slid
6.7% after three sources said the company is in talks to buy
part or all of a stake in brokerage Sinolink Securities worth at
least $1.5 billion. Advancing issues outnumbered declining ones on the NYSE by a
1.24-to-1 ratio; on Nasdaq, a 1.14-to-1 ratio favored advancers.
The S&P 500 posted 83 new 52-week highs and no new lows; the
Nasdaq Composite recorded 396 new highs and 12 new lows.

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