Dow hits high for 7th straight day

En­ergy stocks jump as in­vestors ex­pect steady oil prices; tech rises on eve of a meet­ing with Trump.

The Denver Post - - BUSINESS - By Mar­ley Jay

Ma­jor U.S. stock in­dexes set records again Tues­day as en­ergy com­pa­nies con­tin­ued to climb fol­low­ing in­ter­na­tional deals that will cut oil pro­duc­tion.

Big-name tech­nol­ogy com­pa­nies such as Ap­ple and IBM also traded higher as the Dow Jones in­dus­trial av­er­age closed above 19,900 for the first time.

The Dow fin­ished at an all-time high for the sev­enth con­sec­u­tive trad­ing day. The big­gest gain went to IBM, while Ap­ple and Exxon Mo­bil also fin­ished near the top.

En­ergy com­pa­nies rose for the ninth day out of the last 10 as in­vestors an­tic­i­pated stead­ier oil prices and larger prof­its.

J.J. Ki­na­han, TD Amer­i­trade’s chief strate­gist, said stocks have surged since the pres­i­den­tial elec­tion be­cause af­ter a long cam­paign, in­vestors have a bet­ter idea which poli­cies the coun­try will adopt.

The Dow Jones in­dus­trial av­er­age climbed 114.78 points, or 0.6 per­cent, to 19,911.21. The blue-chip in­dex went as high as 19,953. The Stan­dard & Poor’s 500 in­dex picked up 14.76 points, or 0.7 per­cent, to 2,271.72. The Nas­daq com­pos­ite climbed 51.29 points, or 0.9 per­cent, to 5,463.83.

En­ergy com­pa­nies rose for the fifth con­sec­u­tive day. Exxon Mo­bil climbed $1.60, or 1.8 per­cent, to $92.58 and Noble En­ergy ad­vanced $1.80, or 4.5 per­cent, to $41.64.

OPEC coun­tries agreed on Nov. 30 to trim oil pro­duc­tion next year, and over the week­end a group of 11 other na­tions also agreed to make cuts.

Those re­duc­tions are in­tended to prop up the price of oil fol­low­ing a two-year slump. U.S. crude is up 17 per­cent since the OPEC deal was an­nounced, which has taken it to its high­est price in al­most a year and a half, and the S&P 500 en­ergy in­dex is up 10 per­cent.

Bench­mark U.S. crude rose 15 cents to $52.98 a bar­rel in New York. Brent crude, the in­ter­na­tional stan­dard, added 3 cents to $55.72 a bar­rel in Lon­don.

Tech­nol­ogy com­pa­nies jumped as a group of tech ex­ec­u­tives pre­pare to meet with Pres­i­dent-elect Don­ald Trump on Wed­nes­day. Ki­na­han said in­vestors in tech­nol­ogy com­pa­nies may be look­ing for­ward to tax changes that will en­cour­age them to bring more cash back to the U.S. and in­vest it in their busi­nesses or re­turn it to share­hold­ers.

On Tues­day Ap­ple added $1.89, or 1.7 per­cent, to $115.19. IBM was the big­gest gainer on the Dow, as it picked up $2.79, or 1.7 per­cent, to $168.29.

Con­sumer-fo­cused com­pa­nies rose more than the rest of the mar­ket.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.