Drugmakers, tech firms lift stock indexes
U.S. stocks powered to their biggest gain in almost nine months Friday as drugmakers and technology companies surged. Investors were cheered that President Trump appeared to take a more positive tone on international trade.
AbbVie boosted biotechnology companies with a strong fourth quarter and a greater annual profit forecast, and Pfizer and other drugmakers also made big gains. Intel had its best day in almost nine years after its fourth-quarter results reassured investors that security flaws recently discovered in its processors aren’t damaging its sales. Wynn Resorts tumbled following sexual misconduct allegations against Steve Wynn, the casino operator’s chairman, chief executive and biggest shareholder.
Speaking at the World Economic Forum in Davos, Switzerland, Trump said Friday that leaders should prioritize their own countries, but that his administration isn’t opposed to international cooperation and that continued growth for the U.S. economy is good for the rest of the world.
The Standard & Poor’s 500 index posted its biggest gain since March 1. Already at record highs, the index is up 7.5% in January and on track for its largest monthly increase since October 2015.
Tech and industrial firms made hefty gains, as did Amazon and other retailers, and banks rose along with interest rates. Those companies tend to benefit from more global trade and faster economic growth. Many of them are helped by a weaker dollar, and the U.S. currency declined again Friday. The weaker dollar raises costs for more U.S.-focused companies such as those in the Russell 2000, which lagged behind other major indexes Friday.
Intel said that its data center business did well in the fourth quarter and that the Meltdown and Spectre security flaws aren’t affecting its sales. It forecast $65 billion in revenue this year, more than analysts expected. The stock jumped 10.6% to $50.08, its biggest gain since March 2009.
AbbVie posted greater sales of key drugs including Humira, an inflammatory disease treatment that is the world’s biggest-selling drug by revenue, and its hepatitis C treatments. AbbVie also raised its profit forecast for 2018. The stock jumped 13.8% to $123.21.
Pfizer rose 5.3% to $39.01 on reports that it’s getting closer to a deal to sell its consumer healthcare business.
Starbucks slid 4.2% to $57.99 after it posted weaker growth than investors had hoped. Analysts were unhappy with its results outside the U.S., and Starbucks also said holiday merchandise sales were slow.
The dollar fell to 108.66 yen from 109.41 yen. The euro rose to $1.2423 from $1.2391. The ICE U.S. dollar index is at three-year lows and has declined for six consecutive weeks.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.66%, matching its highest level in more than three years, from 2.62%.
After hitting an 18-month high Thursday, gold fell $10.80 to $1,352.10 an ounce. Silver fell 17 cents, or 1%, to $17.44 an ounce. Copper fell 2 cents to $3.20 a pound.
Benchmark U.S. crude rose 63 cents to $66.14 a barrel. Brent crude rose 10 cents to $70.52 a barrel. Wholesale gasoline rose 2 cents to $1.94 a gallon. Heating oil rose 2 cents to $2.14 a gallon. Natural gas rose 9 cents, or 2.5%, to $3.53 per 1,000 cubic feet.