New high for S&P 500
Health care and financial stocks led another milestone-setting rally on Wall Street Wednesday, extending the market’s gains for the week.
The Dow Jones Industrial Average climbed more than 480 points, and the S&P 500 index and Nasdaq composite each hit an all-time high.
The latest gains came as another batch of solid corporate earnings reports and encouraging economic data overshadowed concerns about the potential economic fallout from the virus outbreak that originated in China.
The latest jobs survey by payroll processor ADP indicated hiring accelerated better than expected last month. A separate report showed economic activity increased in January.
“The earnings numbers that we’ve gotten for the most part have been pretty solid, and the ADP report was a blowout on the good side,” said Scott Ladner, chief investment officer for Horizon Investments.
Industrial and technology stocks also helped lift the market. Crude oil prices jumped 2.3%, giving energy stocks a boost. Exxon Mobil gained 4.6%.
Real estate stocks were the only decliners as investors shifted away from safe-play holdings and took on more risk. The yield on the 10-year Treasury rose to 1.64% from 1.60% late Tuesday.
The recent virus outbreak has infected more than 24,500 people globally but has been mostly confined to China. The world’s second largest economy remains on lockdown, and companies continue to warn of an expected impact to revenue and profit, though the extent of the damage for many remains unclear.
Anxiety about the outbreak fueled a midJanuary slump for stocks, but investors appear to have set aside those jitters this month.
“We’re not only focused on what’s going on with this virus, we’re focused on all the other things that are out there, and all the other things that are out there are systematically and consistently positive,” Ladner said.
Investors got more encouraging news about the U.S. economy on Wednesday. Payroll processor ADP said that private U.S. companies added 291,000 jobs in January, a big increase from December. The report came out ahead of the Labor Department’s release of its January jobs tally on Friday. Many analysts expect that report will show a job gain of 150,000 in January, compared to 145,000 jobs in the government’s report in December.