Banks, tech firms boost stocks

Drugmakers and distributors sink; European Central Bank to reduce bond purchases

NEW YORK» U.S. stocks rose Thursday as gains for technology companies and banks helped the market recover some of its losses from earlier in the week.

The European Central Bank said Thursday it will begin gradually reducing the bond purchases it’s been making to strengthen the regional economy. Investors were glad the bank isn’t being more aggressive. The euro weakened and European stock indexes jumped. Technology companies recovered some of the ground they lost a day ago, and banks and credit card companies jumped as bond yields continued to climb.

Drugmakers sank after Celgene and Bristol-Myers Squibb slashed their forecasts. Late in the day, drugstores and companies that distribute medications sank on reports Amazon is taking steps to move into the pharmaceutical business by getting licenses to distribute medications wholesale.

For years the European Central Bank has bought bonds to help strengthen the region’s economy. Starting in January the bank plans to cut the size of its purchases in half, to 30 billion euros a month.

Scott Wren, senior global equity strategist for Wells Fargo Investment Institute, said investors were relieved the bank did not announce a bigger cut in bond purchases or take more aggressive steps.

“The market was a little bit fearful that the ECB was going to be more hawkish,” he said. “That wasn’t the case.”

The Standard & Poor’s 500 index rose 3.25 points, or 0.1 percent, to 2,560.40. The Dow Jones industrial average gained 71.40 points, or 0.3 percent, to 23,400.86. The Nasdaq composite lost 7.12 points, or 0.1 percent, to 6,556.77. The Russell 2000 index of smaller-company stocks added 3.98 points, or 0.3 percent, to 1,497.46.

Drugmaker Celgene plunged after it reduced its forecasts for this year, partly because it expects weaker sales of its new psoriasis treatment Otezla.

Drugstores, prescription drug distributors and pharmacy benefits managers sank after the St. Louis Post-Dispatch reported that Amazon has received wholesale pharmacy licenses in at least 12 states, the latest suggestion the company intends to enter that market. Investors in those companies fear Amazon will slash prices and hurt their revenue.

Benchmark U.S. crude added 46 cents to $52.64 a barrel in New York. Brent crude, used to price international oils, rose 86 cents, or 1.5 percent, to $59.30 a barrel in London.