Industrials, tech lift U.S. stocks
NEW YORK» U.S. stocks rose Tuesday as industrial and technology companies recovered some of the big losses they took over the last month. Strong company earnings also contributed to the gains, but stocks stayed calm as traders waited for results from the midterm elections in the U.S.
Industrial and basic materials companies made some of the biggest gains following reports from fertilizer maker Mosaic and granite, limestone, sand and gravel seller Martin Marietta Materials. Bond prices dipped, sending yields higher. Oil prices continued to fall, extending four weeks of losses. British stocks fell as negotiators from the U.K. and European Union as remained deadlocked over the issue of Ireland’s borders.
The S&P 500 index rose 17.14 points, or 0.6 percent, to 2,755.45. The Dow Jones industrial average gained 173.31 points, or 0.7 percent, to 25,635.01. The Nasdaq composite picked up 47.11 points, or 0.6 percent, to 7,375.96. The Russell 2000 index of smaller-company stocks added 8.59 points, or 0.6 percent, to 1,556.10.
Stocks dropped in October and recovered a sliver of their gains during a three-day rally last week. They made smaller moves over the final few days before the polls closed. Stocks tend to fall before midterm elections and then rally once the voting is over. The S&P 500 has generated an average price return of 16.7 percent in the 12 months after midterm elections since 1946, according to CFRA.
Drugstore and pharmacy benefits manager CVS Health rose 5.7 percent to $77.90 after its results topped Wall Street forecasts in the third quarter. It was helped by a large bump in prescriptions. CVS also said it expects to complete its purchase of health insurer Aetna before the Thanksgiving holiday.
Symantec rallied after the security software maker said it bought two smaller companies. It didn’t disclose terms. Shares of Symantec rose further after Reuters reported that private equity firm Thoma Bravo is interested in buying the company. The stock jumped 12.6 percent to $22.54.
Among materials companies, Mosaic rose 10.6 percent to $35.64 after it raised its annual profit forecast, and Martin Marietta climbed 8.4 percent to $189.55. Construction materials company Vulcan gained 3.5 percent to $104.12.
Industrial companies also rose. Caterpillar climbed 2.3 percent to $129.33 and Boeing added 1.2 percent to $366.47.
Oil prices continued to slip after the U.S. said it would allow a group of allies to continue buying oil from Iran as long as they continued to try to reduce their imports from that nation. The U.S. reinstated sanctions on Iran this month.