Healthcare, tech lead stocks higher
U.S. stocks rose again Thursday as investors were pleased with a report that showed spending by U.S. consumers grew in July, along with wages and salaries. Healthcare and technology companies led the way, and the Nasdaq composite set a record.
Companies that sell such items as cosmetics, toys and shoes advanced as investors bet Americans would shop more. Biotech drug companies, drug distributors and scientific equipment companies made some of the biggest gains in healthcare. Gasoline futures continued to soar as former Hurricane Harvey took a large toll on refining operations.
The Commerce Department said consumer spending rose 0.3% in July, the best showing in three months, as wages and salaries increased. On Friday, investors will look at the government’s monthly jobs report for data on employment and wages.
“The economy is gaining traction, and inflation at this stage is still modest,” said Quincy Krosby, chief market strategist at Prudential Financial. Low inflation and low interest rates make stocks more appealing and securities such as bonds less so.
Drugmaker Biogen rose 4.2% to $316.58, a two-year high. Gilead Sciences rose 3.1%, to $83.74, its highest price in more than a year.
Tech companies, which are trading at record highs, rose for the fourth day in a row. Alphabet, Google’s parent company, rose 1.2% to $955.24. Microsoft ticked up 1% to $74.77.
Among retailers, Amazon rose 1.3% to $980.60. Jewelry seller Tiffany jumped 4.3% to $91.40. Toolmaker Stanley Black & Decker climbed 3% to $144.
After three days of declines linked to Gulf Coast storm Harvey, benchmark U.S. crude jumped $1.27, or 2.8%, to $47.23 a barrel in New York. Brent crude, used to price international oils, rose $1.52, or 3%, to $52.38 a barrel in London.
Already at two-year highs, wholesale gasoline prices climbed at an even faster pace as some refining operations and pipelines in the Gulf Coast region remained offline. Wholesale gasoline surged 26 cents, or 13.5%, to $2.14 a gallon.
Heating oil rose 8 cents, or 5%, to $1.67 a gallon. Natural gas rose 10 cents, or 3.4%, to $3.04 per 1,000 cubic feet.
Campbell Soup skidded 8.1% to $46.20, a two-year low, after the company reported a weak quarter and said it expects sales to keep falling.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.12% from 2.13%.
Gold rose $8.10 to $1,322.20 an ounce. Silver rose 7 cents to $17.58 an ounce. Copper rose 1 cent to $3.10 a pound.
The dollar fell to 109.98 yen from 110.36 yen. The euro rose to $1.1903 from $1.1890.