Tech stocks push indexes to records
Gains in technology companies helped lift U.S. stock indexes Monday, nudging the market once again into record territory.
The Standard & Poor’s 500 index closed at an alltime high. The Dow Jones industrial average did too, extending its winning streak to 10 days.
Traders bid up shares in microchip makers and other tech companies. Consumerfocused firms also helped lift the market. Energy firms declined the most as the price of crude oil fell. Banks and industrial firms also lagged.
Positive economic data and strong company earnings have helped nudge the stock market mostly higher in recent weeks.
Heading into Monday, about 82% of S&P 500 companies had reported quarterly results, with roughly 52% having posted betterthan-expected earnings and revenue, according to S&P Global Market Intelligence. Tech firms led all others, with 73% of the sector’s results beating expectations.
Investors have welcomed the earnings growth, pushing the market further into record territory. That has fueled speculation about how high the market can go.
“What you want to see is a broad range of stocks pushing the market higher, and what we’re seeing are fewer stocks pushing the market higher,” said Quincy Krosby, chief market strategist at Prudential Financial. “That’s not necessarily a prescription for a major pullback, but it’s something to watch.”
Technology companies led the market’s gainers Monday. Lam Research rose 3.9% to $155.84. KLA-Tencor rose 3.6% to $92.01.
Energy stocks were on the other end of the spectrum. Newfield Exploration slid 5% to $26.44.
Traders bid up shares in companies whose earnings beat expectations. Tyson Foods climbed 5.7% to $66.90. The meat processor’s forecasts also pleased investors. ON Semiconductor jumped 8.1% to $16.33.
Some companies’ results disappointed. Armstrong Flooring slid 17.5% to $14.25 after its quarterly results fell well short of forecasts.
NxStage Medical, a medical device company, soared 28.2% to $29.67 after it agreed to be acquired by Germany’s Fresenius Medical Care for $30 a share in a cash deal valued at about $2 billion.
Rockwell Collins jumped 6.8% to $127.07 after Reuters reported that United Technologies offered to buy the aviation electronics maker.
Alibaba Group rose 3.6% to $158.84 and hotel company Marriott International rose 1.1% to 106.17 after they announced a joint venture aimed at Chinese tourists.
Benchmark U.S. crude fell 19 cents, or 0.4%, to $49.39 a barrel. Brent crude fell 5 cents, or 0.1%, to $52.37 a barrel. Wholesale gasoline fell 2 cents to $1.63 a gallon. Heating oil fell 1 cent to $1.64 a gallon. Natural gas rose 3 cents to $2.80 per 1,000 cubic feet.
Gold rose 10 cents to $1,264.70 an ounce. Silver held steady at $16.25 an ounce. Copper rose 2 cents to $2.91 a pound.
The dollar rose to 110.72 yen from 110.67 yen. It weakened against the euro, which rose to $1.1793 from $1.1769.