Dow flirts with 22,000

Bank and tech firms drive mar­kets higher as earn­ings re­ports con­tinue to come in.

The Denver Post - - BUSINESS - By Mar­ley Jay

Banks and tech­nol­ogy com­pa­nies took U.S. stocks higher Tues­day, and less-loved sec­tors in­clud­ing phone and real es­tate com­pa­nies also climbed as com­pa­nies con­tin­ued to re­port strong sec­ond-quar­ter re­sults.

Pay­ment pro­ces­sors also made hefty gains, while Sprint said it gained wire­less sub­scribers and that it’s open to com­bin­ing with a com­peti­tor or a cable com­pany. Royal Caribbean Cruises, Xe­rox and shop­ping mall op­er­a­tor Si­mon Prop­erty Group climbed, while ath­letic ap­parel maker Un­der Ar­mour and in­dus­trial com­pa­nies fell af­ter dis­ap­point­ing re­sults. Gen­eral Mo­tors and Ford slumped on weak July sales.

Some of the largest gains went to com­pa­nies and in­dus­tries that have strug­gled this year, like real es­tate in­vest­ment trusts, or which have missed out on the gains en­tirely, like phone com­pa­nies. Randy Fred­er­ick, vice pres­i­dent of trad­ing and de­riv­a­tives at the Sch­wab Cen­ter for Fi­nan­cial Re­search, said the shift is a good sign for the stock mar­ket.

“When peo­ple are will­ing to go out and do the prover­bial bar­gain hunt­ing in ar­eas that have not out­per­formed as much, that shows con­fi­dence,” he said. “The broader the bull mar­ket be­comes, the more sec­tors that par­tic­i­pate, the more sus­tain­able it be­comes.”

The Stan­dard & Poor’s 500 in­dex rose 6.05 points, or 0.2 per­cent, to 2,476.35. The Dow Jones in­dus­trial av­er­age climbed 72.80 points, or 0.3 per­cent, to 21,963.92. The blue chip in­dex closed at a record high for the fifth day in a row. Nas­daq com­pos­ite added 14.82 points, or 0.2 per­cent, to 6,362.94. The Rus­sell 2000 in­dex of smaller-com­pany stocks gained 3.19 points, or 0.2 per­cent, to 1,428.33.

Banks helped lead the way. The top gain­rose ers in­cluded JPMor­gan Chase, which rose $1.23, or 1.3 per­cent, to $93.03 and Cit­i­group, which added $1.15, or 1.7 per­cent, to $69.60.

In­tel rose as South Korean reg­u­la­tors signed off on its deal for Mo­bil­eye. Mo­bil­eye makes soft­ware that pro­cesses in­for­ma­tion from cam­eras and other car sen­sors to de­cide where an au­ton­o­mous car should steer, and In­tel agreed to buy it for $15 bil­lion in March. In­tel gained 88 cents, or 2.5 per­cent, to $36.35.

Tech could be in for more gains Wed­nes­day. Ap­ple re­ported a strong quar­ter af­ter the clos­ing bell on Tues­day, and its stock 4.7 per­cent in af­ter-hours trad­ing. Ap­ple re­ported earn­ings and rev­enue that far ex­ceeded an­a­lysts’ fore­casts, and is­sued a solid out­look for the fourth quar­ter.

Oil prices plunged af­ter a six-day rally. U.S. crude shed $1.01, or 2 per­cent, to $49.16 a bar­rel in New York. Brent crude, the in­ter­na­tional stan­dard, dropped 94 cents, or 1.8 per­cent, to $51.78 a bar­rel in Lon­don.

Richard Drew, The As­so­ci­ated Press

Trader Luke Scan­lon works on the floor of the New York Stock Ex­change on Tues­day. Some of the day’s largest gains were seen by com­pa­nies and in­dus­tries that have not done well this year.

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