Oil, bank stocks lift Dow to record high

Tech com­pa­nies Face­book, Or­a­cle take a tum­ble

Baltimore Sun - - TRUMP TRANSITION - By Mar­ley Jay

NEW YORK — Tech­nol­ogy com­pa­nies plunged Thurs­day, and high-div­i­dend stocks also took hefty losses as bond yields rose to their high­est level in more than a year.

But more big gains for blue-chip bank­ing and oil stocks pulled the Dow Jones in­dus­trial av­er­age to a record high.

Big names like Face­book and Or­a­cle fell as tech­nol­ogy com­pa­nies took their big­gest losses in two months.

Ris­ing bond yields pushed in­come-seek­ing in­vestors away from real es­tate and util­ity com­pa­nies. Health care stocks also slumped.

Banks con­tin­ued to soar as in­vestors ex­pect them to make big­ger prof­its on loans Ris­ing bond yields kept in­come-seek­ing in­vestors from real es­tate and util­ity com­pa­nies. as in­ter­est rates rise.

Oil prices climbed for the sec­ond day af­ter the coun­tries of OPECa­greed to trim oil pro­duc­tion next year.

Karyn Ca­vanaugh, se­nior market strate­gist for Voya In­vest­ment Strate­gies, said a fo­cus on Pres­i­dent-elect Don­ald Trump’s trade poli­cies might hurt tech stocks.

Trump toured a Car­rier fac­tory Thurs­day in In­di­ana af­ter an­nounc­ing the com­pany will keep some op­er­a­tions at the fa­cil­ity in­stead of mov­ing them to Mex­ico.

He warned of con­se­quences for com­pa­nies that send jobs out of the coun­try.

“If you’re go­ing to bring jobs back to Amer­ica and make stuff here, tech is go­ing to be pretty vul­ner­a­ble,” Ca­vanaugh said. “If there’s go­ing to be a trade war, tech is pretty vul­ner­a­ble.”

The Dow gained 68.35 points, or 0.4 per­cent, to 19,191.93, its high­est close on record. The Stan­dard & Poor’s 500 in­dex dropped 7.73 points, or 0.4 per­cent, to 2,191.08. The Nas­daq com­pos­ite fell 72.57 points, or 1.4 per­cent, to 5,251.11.

Stock in­dexes set records af­ter the pres­i­den­tial elec­tion last month, but lately they have wob­bled as dif­fer­ent in­dus­tries were pulled in op­po­site di­rec­tions.

Banks and in­dus­trial and ma­te­ri­als com­pa­nies are ris­ing while tech stocks have weak­ened.

Bond prices con­tin­ued to tum­ble, send­ing bench­mark yields higher.

The yield on the 10-year Trea­sury note rose to 2.44 per­cent from 2.38 per­cent, its high­est since July 2015. That sent bank stocks higher be­cause higher bond yields are linked to higher in­ter­est rates, which al­low banks to make more money from lend­ing.

Af­ter a big gain Wed­nes­day, the dol­lar slipped to 114.04 yen from 114.22 yen. The euro rose to $1.0645 from $1.0599.

In the last few weeks the dol­lar has reached a 13-year high com­pared to other cur­ren­cies.

A strong dol­lar hurts prof­its and sales for com­pa­nies that do busi­ness over­seas, and the tech­nol­ogy com­pa­nies on the S&P 500 get 60 per­cent of their rev­enue out­side the U.S.

Oil prices ral­lied again and reached their high­est level since mid- Oc­to­ber. Bench­mark U. S. crude picked up $1.62, or 3.3 per­cent, to close at $51.06 a bar­rel in New York.

Gold f ell $ 4.50 $1,169.30 an ounce.

Auto sales climbed in Novem­ber and broke out of a re­cent slump.

U.S. auto sales broke records last year and there have been some signs re­cently that de­mand is wan­ing, but on Thurs­day, a Toy­ota ex­ec­u­tive said he thought sales could set a new record in 2016.

GM and Ford climbed af­ter they re­ported stronger sales growth than an­a­lysts ex­pected. to


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