Financial stocks push up indexes
Financial companies led U.S. stock indexes slightly higher Thursday, nudging the Nasdaq composite index to a record high.
The latest gains came as the stock market continued to trade mostly in a narrow range in the absence of major new economic data and ahead of next week’s meeting of Federal Reserve policymakers.
The Standard & Poor’s 500 index gained 0.65 points, or 0.03 percent, to 2,433.79. The Dow Jones industrial average rose 8.84 points, or 0.04 percent, to 21,182.53. Both indexes remain slightly below their record highs set last Friday.
The Nasdaq rose 24.38 points, or 0.39 percent, to 6,321.76. Small-company stocks fared better than the rest of the market. The Russell 2000 index climbed 18.94 points, or 1.4 percent, to 1,415.61.
Speculation that the Fed will raise interest rates helped financial stocks for the second day in a row. Higher interest rates allow banks and credit card issuers to charge more for loans, which increases profits.
Utilities and consumer goods companies were among the biggest decliners. Energy stocks also fell as crude oil prices declined.
“[Today] is a continuation of fairly muted market action,” Bill Northey, chief investment officer at U.S. Bank Wealth Management. “We’ve been in a very low volatility period of time. We’re also a bit between material economic events.”
Bond prices fell. The 10-year Treasury yield rose to 2.19 percent from 2.18 percent late Wednesday.
Stocks wavered between small gains and losses through much of the day as investors tuned in to watch former FBI Director James Comey testify before Congress as part of the investigation into Russian meddling into the U.S. presidential election.
Investors have been looking for more progress out of the White House on its agenda to cut taxes, increase infrastructure spending and implement other business-friendly policies.
The Republican-led House took steps Thursday to advance Trump’s pledge to ease regulations on businesses by taking a vote on legislation that would undo the stricter banking rules that took effect after the 2008 financial crisis. That helped lift bank stocks.
Goldman Sachs Group shares rose $2.98, or 1.4 percent, to $218.76. JPMorgan Chase added $1.04, or 1.2 percent, to $84.95. Regions Financial gained 44 cents, or 3.2 percent, to $14.03.
Shares of Urban Outfitters slid 10.3 percent after the retailer said sales at older stores are running lower than expected this month. That followed weak sales in May. The stock shed $1.88 to $16.35.
Benchmark U.S. crude wavered for much of the day before sliding 8 cents to settle at $45.64 a barrel in New York. Brent crude, used to price international oils, fell 20 cents to close at $47.86 per barrel in London.
In metals trading, gold fell $13.70, or 1.1 percent, to $1,279.50 per ounce. Silver lost 21 cents, or 1.2 percent, to $17.41 per ounce. Copper gained 6 cents, or 2.3 percent, to $2.61 per pound.