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.
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.