Financials, energy, defensive sectors boost Wall St.

NEW YORK — The S&P 500 rose on Monday with boosts from financial, energy and defensive sectors as investors showed some caution on the eve of US congressional elections.

While the financial sector was boosted by earnings, the energy sector, which has lagged the broader S&P 500 this year, gained 1.6% after the USA imposed range of punitive sanctions on Iran.

Falling US Treasury yields helped defensive sectors like real estate, utilities and consumer staples, which are sensitive to rising interest rates, according to traders. “Anytime utilities and consumer staples are up that’s a little fear,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh, citing the Iran sanctions as well as the Nov. 6 mid-term elections.

“Regardless of your political bent you don’t know what’s going to happen on Tuesday that’s going to affect the next few years so you’re going for safety.”

Opinion polls showed a strong chance of President Donald Trump’s Republican Party holding the Senate but losing control of the House of Representatives to the Democrats — a potential hurdle to Trump’s pro-business agenda, which has been a major driver of the stock market’s rally since the 2016 election.

But the S&P’s gain on the day could be a sign of optimism among some investors that the midterm election “outcome will be friendly for business,” according to Mr. Mark Luschini, the chief investment strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones Industrial Average rose 190.87 points, or 0.76%, to 25,461.7, the S&P 500 gained 15.25 points, or 0.56%, to 2,738.31 and the Nasdaq Composite dropped 28.14 points, or 0.38%, to 7,328.85.

The real estate sector closed up up 1.7% making it the biggest%age gainer of the S&P 500’s 11 major sector indexes. Utilities rose 1.4% while consumer staples gained 1.2%.

Berkshire Hathaway rose 5% providing the strongest boost to the S&P’s financial sector after the conglomerate run by billionaire Warren Buffett said its quarterly operating profit doubled.

A 2.8% drop in Apple, Inc. shares represented the biggest drag on Nasdaq after a Nikkei report that the company had told its smartphone assemblers to halt plans for additional production lines dedicated to the iPhone XR.

Apple posted its biggest twoday loss since January 2013, after the company’s disappointing holiday-quarter forecast sent its shares down 6.6% on Friday.

Investors were also looking ahead to the Federal Reserve’s two-day monetary policy meeting starting on Wednesday. They have been keeping a close eye on the prospects of tightening US monetary policy, especially after a string of strong economic data, including Friday’s jobs report.

Advancing issues outnumbered declining ones on the NYSE by a 1.80 to one; on Nasdaq, a 1.13-to-one ratio favored decliners. Volume on US exchanges was 7.07 billion shares, compared with the 8.76 billion average for the last 20 trading days. —