Dow, S&P 500 in­dexes roar to record highs

A strate­gist says in­vestors see the jumps, in­clud­ing in trans­porta­tion, as a sign com­pa­nies will spend more.

The Denver Post - - BUSINESS - By Mar­ley Jay

The Dow Jones in­dus­trial av­er­age and Stan­dard & Poor’s 500 in­dexes Wed­nes­day soared to their big­gest gains since the pres­i­den­tial elec­tion and set all-time highs. In­vestors bought stocks that do well in times of faster eco­nomic growth, such as tech­nol­ogy and in­dus­trial com­pa­nies, and also snapped up stocks that pay large div­i­dends.

Stocks moved steadily higher through­out the day af­ter a mixed open. Phone and real es­tate com­pa­nies made the largest gains, and the rally moved into high gear in the af­ter­noon, as air­lines, rail­roads and truck­ing com­pa­nies soared.

Biotech drug com­pa­nies took steep losses af­ter Pres­i­dent-elect Don­ald Trump said he wants to re­duce drug prices.

The trans­porta­tion sec­tor reached an all­time high for the first time in two years. Ju­lian Emanuel, an eq­uity strate­gist for UBS, said in­vestors see that record as a sign busi­nesses will start spend­ing more, which would bol­ster eco­nomic growth.

The Dow Jones in­dus­trial av­er­age jumped 297.84 points, or 1.5 per­cent, to 19,549.62. The Stan­dard & Poor’s 500 in­dex rose 29.12 points, or 1.3 per­cent, to 2,241.35. The Nas­daq com­pos­ite re­cov­ered from an early loss to rise 60.76 points, or 1.1 per­cent, to 5,393.76. That was about five points short of its all-time high.

The Rus­sell 2000 in­dex of small-com­pany stocks also re­cov­ered from an early loss and set its own a record as it gained 11.84 points, or 0.9 per­cent, to 1,364.51.

A wide ar­ray of com­pa­nies that stand to ben­e­fit from faster eco­nomic growth also climbed. Home-im­prove­ment re­tailer Lowe’s rose $3.94, or 5.4 per­cent, to $76.40 and truck maker Pac­car jumped $3.20, or 5 per­cent, to $67.63. U.S. Steel added $1.54, or 4.3 per­cent, to $37.49.

IBM led tech­nol­ogy com­pa­nies higher as it rose $4.44, or 2.8 per­cent, to $164.79. Hard­drive maker Western Dig­i­tal climbed $5.30, or 8.3 per­cent, to $69.15 af­ter it ex­tended a patent-li­cens­ing deal with Sam­sung.

Bench­mark U.S. crude oil lost $1.16, or 2.3 per­cent, to $49.77 a bar­rel in New York. Brent crude, the in­ter­na­tional stan­dard, slid 93 cents, or 1.7 per­cent, to $53 a bar­rel in Lon­don. En­ergy com­pa­nies traded higher Wed­nes­day, although they rose less than the rest of the mar­ket.

Gold rose $7.40 to $1,177.50 an ounce.

As­so­ci­ated Press file

The Dow in­dex jumped 297.84 points, or 1.5 per­cent, to 19,549.62, while the Stan­dard & Poor’s 500 in­dex rose 29.12 points, or 1.3 per­cent, to 2,241.35.

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