Banks, tech help send Dow closer to 22,000 mark

Austin American-Statesman - - BUSINESS - By Mar­ley Jay

Banks and tech­nol­ogy com­pa­nies took U.S. stocks higher Tues­day, and less-loved sec­tors in­clud­ing phone and real es­tate com­pa­nies also climbed as com­pa­nies con­tin­ued to re­port strong sec­ond-quar­ter re­sults.

Pay­ment pro­ces­sors also made hefty gains, while Sprint said it gained wire­less sub­scribers and that it’s open to com­bin­ing with a com­peti­tor or a ca­ble com­pany. Royal Caribbean Cruises, Xerox and shop­ping mall op­er­a­tor Simon Prop­erty Group all climbed, while ath­letic ap­parel maker Un­der Ar­mour and in­dus­trial com­pa­nies fell after dis­ap­point­ing re­sults. General Mo­tors and Ford slumped on weak July sales re­ports.

Some of the largest gains went to com­pa­nies and in­dus­tries that have strug­gled this year, like real es­tate in­vest­ment trusts, or which have missed out on the gains en­tirely, like phone com­pa­nies. Randy Fred­er­ick, vice pres­i­dent of trad­ing and de­riv­a­tives at the Sch­wab Cen­ter for Fi­nan­cial Research, said the shift is a good sign for the stock mar­ket.

“When peo­ple are will­ing to go out and do the prover­bial bar­gain hunt­ing in ar­eas that have not out­per­formed as much, that shows con­fi­dence,” he said. “The broader the bull mar­ket be­comes, the more sec­tors that par­tic­i­pate, the more sus­tain­able it be­comes.”

The Stan­dard & Poor’s 500 in­dex rose 6.05 points, or 0.2 per­cent, to 2,476.35. The Dow Jones in­dus­trial av­er­age climbed 72.80 points, or 0.3 per­cent, to 21,963.92. The blue chip in­dex closed at a record high for the fifth day in a row. Nas­daq com­pos­ite added 14.82 points, or 0.2 per­cent, to 6,362.94. The Rus­sell 2000 in­dex of smaller-com­pany stocks gained 3.19 points, or 0.2 per­cent, to 1,428.33.

Banks helped lead the way. The top gain­ers in­cluded JPMor­gan Chase, which rose $1.23, or 1.3 per­cent, to $93.03 and Cit­i­group, which added $1.15, or 1.7 per­cent, to $69.60.

In­tel rose as South Korean reg­u­la­tors signed off on its deal for Mo­bil­eye. Mo­bil­eye makes soft­ware that pro­cesses in­for­ma­tion from cam­eras and other car sen­sors to de­cide where an au­ton­o­mous car should steer.

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