Comments
All three major US stock indexes were on track to hit closing records on Monday, helped by gains in energy and other commodity-related shares and as Facebook led a jump in technology.
The indexes, all of which hit intraday record highs, have rallied since the November 8 US election, with investors snapping up shares of banks, healthcare and other companies expected to benefit from President-elect Donald Trump’s policies.
The energy index gained 2.1 per cent to a 16-month high, dominating the gainers among the 11 major S&P sectors, as US oil prices jumped 3.9 per cent. Hopes that the OPEC would agree to an output cut next week lifted oil prices. The S&P materials index was up 1 per cent.
“I think the post-election rally is continuing,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama. “There was some concern that rates might rise too far, but it looks like they may have slowed down a little bit.”
“A lot of money came out of bond funds last week, and I think that can continue, given the spread between what stocks can do versus bonds.”
The technology index, which had dropped 0.4 per cent since the election, was up 0.9 per cent. Facebook rose 4 per cent, giving the Nasdaq its biggest boost, after the company announced a $6-billion share buyback programme late Friday.
The Dow Jones industrial average was up 69.58 points, or 0.37 per cent, to 18,937.51, the S&P 500 gained 13.45 points, or 0.62 per cent, to 2,195.35 and the Nasdaq Composite added 40.88 points, or 0.77 per cent, to 5,362.39.
A spate of tech deals also boosted sentiment in the sector and the broader market.
LifeLock surged 15.2 per cent after Symantec said it would buy the identity theft protection company for $2.3 billion. Symantec rose 4.7 percent.
Applied Micro Circuits jumped 11 per cent after Macom Tech said it would buy its fellow chipmaker for $770 million. Macom was off 4.1 per cent.
Tyson Foods shares fell 14.2 per cent after the meat processor forecast a lower-than-expected 2017 profit and said its CEO would step down.
Advancing issues outnumbered declining ones on the NYSE by a 3.11-to-1 ratio; on Nasdaq, a 1.39-to-1 ratio favoured advancers.
The S&P 500 posted 37 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 223 new highs and 19 new lows.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.