Dow edges closer to 20,000
Bank, tech stocks move higher
Banks and technology companies took U.S. stocks higher Tuesday, boosting the Dow Jones industrial average for a fifth consecutive day to a record high just 36 points below the 22,000 milestone.
Company earnings remained strong in the second quarter, boosting investor confidence in the market even after gains in the Dow of nearly 18 percent in the past year.
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. Nasdaq composite added 14.82 points, or 0.2 percent, to 6,362.94.
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.
“The broader the bull market becomes, the more sectors that participate, the more sustainable it becomes.”
– RANDY FREDERICK
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, and Intel agreed to buy it for $15 billion in March. Intel gained 88 cents, or 2.5 percent, to $36.35.
Tech could be in for more gains Wednesday. Apple reported a strong quarter after the closing bell on Tuesday, and its stock rose 4.7 percent in after-hours trading.
T-Mobile USA climbed $1.41, or 2.3 percent, to $63.07 and Verizon Communications gained 49 cents, or 1 percent, to $48.89.
Utility company Scana continued to rise after it said it will end construction of two nuclear reactors that customers have already paid billions to build. Scana’s South Carolina Electric & Gas unit and state-owned Santee Cooper say they have already spent $10 billion on the project and that it could cost $20 billion to finish. The companies blamed years of delays and cost overruns, and Westinghouse, the primary contractor, filed for bankruptcy protection earlier this year.