Modest gains push indexes to record highs
Associated Press
Gains by big technology and health care companies pushed U.S. stocks modestly higher Friday, lifting several major indexes to new highs.
The Standard & Poor’s 500 index, Dow Jones industrial average and Russell 2000 index of smallercompany stocks each set records as the market posted its third straight day of gains.
Energy companies helped lift the market as crude oil prices rose. High-dividend stocks like real estate companies and utilities also posted big gains following a drop in bond yields. The lower yields and a weak forecast from JPMorgan Chase weighed on banks. Financial stocks were the only sector in the S&P500 to end lower.
Investors brushed off a report showing U.S. retail sales declined in June and drew encouragement from data indicating industrial production rebounded last month. Traders also welcomed a report showing inflation at the consumer level was flat in June, which suggests that the Federal Reserve may have more reason to delay another interest rate increase.
“The low inflation data will put the Fed more in a wait-and-see mode to really determine if the low inflationary environment is really transitory,” said Lindsey Bell, investment strategist at CFRA Research. The S&P 500 index gained 11.44 points, or 0.5 percent, to 2,459.27. The Dow rose 84.65 points, or 0.4 percent, to 21,637.74. The average has hit a recordhigh three days in a row.
In other energy trading, wholesale gasoline picked up 3 cents to $1.56 a gallon. Natural gas gained 2 cents to $2.98 per 1,000 cubic feet.