Banks, tech lead Dow to a new record

Los Angeles Times - - COMPANY TOWN -

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.