Tech, energy stocks buoy Wall Street
US stocks rose on Tuesday, with the Dow registering its fourth consecutive record high close as tech stocks rebounded from a post-election battering and energy stocks were boosted by a sharp rise in oil prices.
US STOCKS rose on Tuesday, with the Dow registering its fourth consecutive record high close as tech stocks rebounded from a post-election battering and energy stocks were boosted by a sharp rise in oil prices.
The Dow Jones industrial average extended its rally to seven days after it turned positive in late trading, while oil futures continued their rise and investors kept piling into technology stocks.
“Buyers who were waiting to buy technology stocks didn’t have an option but to get involved and continue buying the strength. That’s propelled them higher as the day went on,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
The technology sector was the S&P’s biggest gainer, closing up 1.3% in a partial rebound from its 3% decline since Donald J. Trump’s shock victory on Nov. 8. Investors set aside worries that the sector could be hurt by Trump’s immigration and foreign trade policies.
The S& P’s energy index was the next biggest driver, with a 2.7% rise, as US crude oil jumped more than 6% from multi-month lows on expectations that OPEC will agree later this month to cut production..
The Dow Jones industrial average rose 54.37 points, or 0.29%, to 18,923.06, the S&P 500 gained 16.19 points, or 0.75%, to 2,180.39 and the Nasdaq Composite added 57.23 points, or 1.1%, to 5,275.62.
Tech giants Microsoft, Amazon and Alphabet provided the biggest boost to the Nasdaq and, along with Apple, Inc., were the top drivers for the S&P 500.
Oil giant Exxon Mobil rose 1.8%, also contributing to the S&P’s rise.
Equity investors have been betting that Mr. Trump will live up to his campaign promises to boost government spending, along with lower taxes and lighter regulation.
“People view all of this as positive for the economy and positive for the market. That continues to wash through the market. The buying isn’t as virulent as it was, but we’re still doing well,” said Stephen Massocca, chief investment off icer at Wedbush Equity Management LLC.
High-dividend-paying sectors such as utilities and telecommunications also rose following a steep sell-off in the past few days.
US retail sales rose more than expected in October as households bought motor vehicles and a range of other goods. The Commerce Department said on Tuesday that retail sales increased 0.8% last month, above the 0.6% increase forecast by economists.
Home Depot fell 2.6% to $124.40 after the No. 1 US home improvement chain reported strong third-quarter results but kept its full-year sales forecast, implying a weaker-than-expected fourth quarter.
Advancing issues outnumbered declining ones on the NYSE by a 2.65-to-1 ratio; on Nasdaq, a 1.45-to-1 ratio favored advancers.
The S& P 500 posted 37 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 173 new highs and 32 new lows.
About 8.4 billion stocks changed hands on US exchanges, lighter than Monday’s volume but well above the 7.8 billion average for the last 20 sessions. —