Banks, tech lead Dow to a new record
Banks and technology companies took U.S. stocks higher Tuesday, and lessloved sectors including phone and real estate firms also climbed as companies continued to report strong second-quarter results. The Dow Jones industrial average closed at a record high for the fifth day in a row.
Some of the largest gains went to companies and industries that have struggled this year, such as real estate investment trusts, or have missed out on the gains entirely, such as 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 sustainable it becomes.”
Among banks, top gainers included JPMorgan Chase, which rose 1.3% to $93.03, and Citigroup, which rose 1.7% to $69.60.
Intel climbed 2.5% to $36.35 as South Korean regulators signed off on its deal to buy Mobileye. Mobileye makes software that processes information from cameras and other sensors to decide where an autonomous car should steer.
Sprint jumped 11.2% to $8.87 after it said it’s open to combining with another phone company or a cable company. It also reported its first quarterly profit in three years as it cut costs and added wireless subscribers.
T-Mobile USA climbed 2.3% to $63.07. Verizon Communications went up 1% to $48.89. Phone companies, real estate firms and utilities benefited because bond yields fell, which made the stocks more attractive to investors who want income.
Cruise line operator Royal Caribbean climbed 3.4% to $116.87 after it beat analysts’ forecasts and raised its estimates for the year.
Under Armour sank 8.6% to $18.30 after it cut its annual revenue forecast as sharp discounts continue to affect its North America business. The athletic apparel maker said it will eliminate 280 jobs and is aiming to reduce annual spending through a restructuring plan.
Oil prices plunged after a six-day rally. U.S. crude fell 2% to $49.16 a barrel. Brent crude dropped 1.8% to $51.78 a barrel. Wholesale gasoline fell 2 cents to $1.66 a gallon. Heating oil fell 3 cents to $1.64 a gallon. Natural gas rose 3 cents to $2.82 per 1,000 cubic feet.
Bond prices climbed. The yield on the 10-year Treasury note fell to 2.25% from 2.30%.
Gold rose $6 to $1,279.40 an ounce. Silver fell 2 cents to $16.76 an ounce. Copper fell 1 cent to $2.88 a pound.
The dollar rose to 110.30 yen from 110.24 yen. The euro slid to $1.1801 from $1.1831.