Banks and tech sector help market climb
NEW YORK — U.S. stocks rose Thursday as gains for technology companies and banks helped the market recover some of its losses from earlier in the week. However, drugmakers and distributors tumbled.
The European Central Bank said Thursday it will begin gradually reducing the bond purchases it’s been making to strengthen the regional economy. Investors were glad the bank isn’t being more aggressive. The euro weakened and European stock indexes jumped. Technology companies recovered some of the ground they lost a day ago, and banks and credit card companies jumped as bond yields continued to climb.
ECB President Mario Draghi said Thursday’s decision meant the central bank was confident in the economy but “reflects that we are not there yet” and that the upswing “still relies very much on our monetary support.”
He emphasized that the program has no definite end date and in any case would not end abruptly in September.
“It is certainly not going to stop suddenly,” he said.
Drugmakers sank after Celgene and Bristol-Myers Squibb slashed their forecasts.
And late in the day, drugstores and companies that distribute medications sank after reports Amazon is taking steps to move into the pharmaceutical business by getting licenses to distribute medications wholesale.
The St. Louis Post-Dispatch reported that Amazon has received wholesale pharmacy licenses in at least 12 states, not including Texas, the latest suggestion the company intends to enter that market. Investors in those companies fear Amazon will slash prices and hurt their revenue.
CVS Health tumbled 2.9 percent. Minutes before the close of trading, the Wall Street Journal reported that the drugstore-pharmacy benefits company is in talks to buy health insurer Aetna. Aetna stock jumped 11.5 percent.
Materials companies climbed after a round of strong company results. Chemicals maker DowDuPont jumped 2.8 percent.