Tech, health care stocks take indexes back to records
NEW YORK — U.S. stock indexes drifted back to record highs Wednesday as investors got ready for another round of corporate reports to begin. Technology, health care and household goods companies all rose.
Technology companies like PayPal, Visa and Google’s parent company Alphabet made some of the biggest gains as the market changed little for the third day in a row. Banks slipped along with interest rates, and industrial companies took small losses.
Minutes from the Federal Reserve’s September meeting showed officials were split about whether they need to raise interest rates again soon.
But they appeared to be getting used to the idea that inflation is going to stay lower than they had hoped. For years it’s come up short of their 2-percent target.
Kristina Hooper, global markets strategist for Invesco, said one reason for that low inflation is continued fallout from the financial crisis a decade ago. In her view, many of the jobs lost after
the 2008-09 meltdown were replaced by lower-paying ones.
“There are still a good portion of Americans who are making less today than they made before the global financial crisis,” she said. “That’s playing a role in lower wage growth and low inflation.”
The Standard & Poor’s 500 index gained 4.60 points, or 0.2 percent, to 2,555.24. The Dow Jones industrial average added 42.21 points, or 0.2 percent, to 22,872.89. The Nasdaq composite rose 16.30 points, or 0.2 percent, to 6,603.55. All three indexes finished at all-time highs. The Russell 2000 index of smaller-company stocks edged down 1.08 points, or 0.1 percent, to 1,506.92.
Ms. Hooper said inflation might increase if President Donald Trump and Congress pass a tax cut that encourages businesses to invest more money. She said that businesses and consumers both feel optimistic about the economy, but they’re reluctant to spend money because they’re not sure what economicpolicy will look like.
Airlines rose for the second day in a row. Delta Air Lines’ profit and revenue were better than anticipated, and the company also issued a strong forecast for the fourth quarter. Delta rose 37 cents to $53.07. It has surged 9 percent since Oct. 3, when it raised its third-quarter projections. JetBlue gained 30 cents, or 1.5 percent, to $20.53 after it gave an update on the revenue it lost following hurricanesIrma and Maria.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.35 percent from 2.36 percent. That affected bank stocks because lower yields mean lower interest rates on loans, and lower profits for banks.
An upset loss by the U.S. men’s soccer team dented shares of Twenty-First Century Fox. The team will miss the 2018 World Cup following its loss to Trinidad and Tobago. That could cut into advertising revenue for Fox, which will broadcast the event. The stock fell 66 cents, or 2.5 percent, to $26.11.