The Middletown Press (Middletown, CT)
Tech, industrial firms lead stocks back from losses
NEWYORK » North Korea’s latest missile launch jolted the U.S. stockmarket Tuesday, but major indexes pulled back from those early losses and mostly finished higher as the weakening dollar gave technology and industrial companies a boost.
Investors bought bonds, which are traditionally considered safe assets, after North Korea fired a midrange ballistic missile that crossed over northern Japan and fell into the Pacific Ocean. Energy and insurance companies continued to feel the effects of Tropical Storm Harvey, which is dumping record amounts of rain on the Gulf Coast.
The Standard & Poor’s 500 index rose 2.06 points, or 0.1 percent, to 2,446.30. The Dow Jones industrial average gained 56.97 points, or 0.3 percent, 21,865.37. The Nasdaq composite added 18.87 points, or 0.3 percent, to 6,301.89. The Russell 2000 index of smallercompany stocks picked up 1.45 points, or 0.1 percent, to 1,383.68. Still, most of the stocks on the New York Stock Exchange fell.
Defense contractors climbed. Raytheon advanced $3.87, or 2.2 percent, to $182.11. United Technologies and Rockwell Collins rose after the Wall Street Journal reported that the companies are close to a deal. United Technologies, which makes jet engines, elevators and other products, jumped $3.37, or 2.9 percent, to $118.70 and aviation electronics maker Rockwell Collins rose $2.75, or 2.1 percent, to $130.74.
The dollar rose to 109.71 yen from 109.09 while the euro rose to $1.1992 from $1.1979.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.12 percent from 2.16 percent. Lower bond yields translate to lower interest rates, and banks fell as investors expected them to make less money from lending.
Insurers continued to fall as investors wondered if they are facing big losses. MetLife fell 84 cents, or 1.8 percent, to $46.73.
Companies that drill for oil in the Gulf or onshore in Texas are falling as investors worry about potential lost production. Anadarko Petroleum gave up 56 cents, or 1.4 percent, to $40.71.
Benchmark U.S. crude gave up 13 cents to $46.44 a barrel in NewYork. Brent crude, the international standard, picked up 11 cents to $52 a barrel in London. The price of wholesale gasoline jumped another 6 cents, or 4.1 percent, to a two-year high of $1.78 a gallon.
Electronics retailer Best Buy had a solid second quarter and raised its forecasts for the year, but its stock sank after CEO Hubert Joly said he does not think the chain’s sales will stay as strong as they were in the most recent quarter. Its shares fell $7.44, or 11.9 percent, to $55.04.
Gold climbed $3.60 to $1,318.90 an ounce and remains at its highest price since late September. Silver lost 2 cents to $17.43 an ounce. Copper rose 2 cents to $3.08 a pound.
In other energy trading, heating oil rose 3 cents to $1.67 a gallon. Natural gas added 4 cents to $2.96 per 1,000 cubic feet.