Banks, en­ergy firms climb

The Denver Post - - BUSINESS - By Mar­ley Jay

U.S. stocks rose Mon­day as banks continued to climb along with in­ter­est rates, and en­ergy com­pa­nies ral­lied again with oil prices. Bet­ter-than-ex­pected auto sales and a strong re­port on U.S. fac­to­ries also boosted stocks.

En­ergy com­pa­nies made large gains in Mon­day’s ab­bre­vi­ated trad­ing ses­sion as oil prices rose for the eighth day in a row. Banks rose as bond yields and in­ter­est rates continued to rise. Com­pa­nies that stand to ben­e­fit from faster eco­nomic growth, like in­dus­trial com­pa­nies and ba­sic ma­te­ri­als mak­ers, climbed af­ter the In­sti­tute for Sup­ply Man­age­ment said U.S. man­u­fac­tur­ing ac­tiv­ity climbed in June to its high­est level in al­most three years.

“The mar­ket clearly liked that num­ber,” said Scott Wren, se­nior global eq­uity strate­gist for Wells Fargo In­vest­ment In­sti­tute. He said that eco­nomic re­ports over the last few months have been a bit dis­ap­point­ing, but “It’s still in line with ex­pec­ta­tions for mod­est GDP growth.”

The Stan­dard & Poor’s 500 inthe dex added 5.60 points, or 0.2 per­cent, to 2,429.01. The Dow Jones in­dus­trial av­er­age rose 129.64 points, or 0.6 per­cent, to 21,479.27. The Rus­sell 2000 in­dex of smaller-com­pany stocks added 11.32 points, or 0.8 per­cent, to fin­ish at a record high of 1,426.68.

The Nas­daq com­pos­ite lost 30.36 points, or 0.5 per­cent, to 6,110.06. That was a six-week low, as tech­nol­ogy com­pa­nies have been slump­ing for al­most a month.

Over­all, al­most three-fourths of stocks on the New York Stock Ex­change fin­ished higher.

Banks continued their re­cent win­ning ways as bond yields and in­ter­est rates in­creased fur­ther. Higher in­ter­est rates let banks make more money from lend­ing, and that helped fi­nan­cial com­pa­nies rally last week. Ma­jor banks also raised their div­i­dends and said they will buy back more stock. JPMor­gan Chase added $1.85, or 2 per­cent, to $92.75 and Cit­i­group rose $1.38, or 2.1 per­cent, to $68.26. Mor­gan Stan­ley climbed $1.05, or 2.4 per­cent, to $45.61.

U.S. fac­to­ries did more work in June, ac­cord­ing to the In­sti­tute for Sup­ply Man­age­ment. The group’s sur­vey of man­u­fac­tur­ing reached its high­est level since Au­gust 2014. That sug­gests the econ­omy could be get­ting stronger. U.S. man­u­fac­tur­ing con­tin­ues to re­cover af­ter a slump in late 2015 and early 2016.

Bench­mark U.S. crude gained 73 cents, or 1.6 per­cent, to $46.77 a bar­rel in New York, its eighth gain in a row. Brent crude, used to price in­ter­na­tional oils, rose 62 cents, or 1.3 per­cent, to $49.39 a bar­rel in Lon­don. Be­fore their re­cent win­ning streak, crude prices had reached their low­est levels of the year.

As­so­ci­ated Press file

The in­te­rior of the first of the large Boe­ing 737 MAX 9 mod­els sits at the front of the assem­bly line in Fe­bru­ary at the com­pany’s pro­duc­tion fa­cil­ity, in Renton, Wash. The In­sti­tute for Sup­ply Man­age­ment said U.S. fac­to­ries ex­panded at a ro­bust pace in June, a likely sign of strength for the U.S. econ­omy as new or­ders, pro­duc­tion and em­ploy­ment im­proved.

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