S&P keeps New Year’s rally alive

THE S&P 500 extended its winning streak for 2018 on Monday although its advance slowed to a crawl as the healthcare and financial sectors weighed and investors awaited the start of the quarterly earnings season. The healthcare sector was the S&P’s worst performer on Monday, and investors were cautious about pouring money into bank stocks before the companies kick off the fourth-quarter earnings season later this week.

THE S&P 500 extended its winning streak for 2018 on Monday although its advance slowed to a crawl as the health care and financial sectors weighed and investors awaited the start of the quarterly earnings season.

The health care sector was the S&P’s worst performer on Monday, and investors were cautious about pouring money into bank stocks before the companies kick off the fourth- quarter earnings season later this week.

“We had a big move last week and everyone knows earnings is coming up,” said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

“People don’t want to chase too much further when you have a round of fundamental inputs in the next few weeks.”

The Dow Jones Industrial Average fell 12.87 points, or 0.05%, to 25,283,00 the S&P 500 gained 4.56 points, or 0.17%, to 2,747.71, and the Nasdaq Composite added 20.83 points, or 0.29%, to 7,157.39.

The three major indices kicked off 2018 with their strongest first four trading days in more than a decade, according to Reuters data. The Dow had its strongest start since 2003, and the Nasdaq and S&P 500 had their strongest starts since 2006.

Historically, the first five trading days of January can be an indicator for the market’s direction for the full year, according to the Stock Traders Almanac.

The S&P 500’s health care sector ended 0.40% lower. Last week it rose 3.20%.

The Nasdaq biotech index fell 1.40%, on track for its biggest oneday percentage decline since midDecember, led by a 3.70% drop in Biogen, Inc. and a 3.30% decline in Regeneron Pharmaceuticals, Inc.

A 0.40% decline in the bank subsector pressured the broader financials index, which fell 0.10%. Investors were waiting for more details about the impact of recent US corporate tax cuts in fourthquarter earnings calls when the reporting season begins later in the week.

Wells Fargo and Citigroup fell more than 1% while Goldman Sachs declined 1.50%. Most big US lenders have estimated one-off charges to their fourthquarter earnings on account of US tax cuts.

Utilities were the S&P’s biggest percentage gainers, regaining some ground lost in the previous week along with real estate.

Caterpillar closed up 2.50% to $ 166.03, just below a record high set earlier in the day, after JP Morgan upgraded the stock saying the tax overhaul could help North America’s construction business cycle extend in 2018.

Kohl’s Corp. rose 4.70% after the department store operator posted far stronger same- store sales for the holidays than its bigger peers.

GoPro, Inc. shares ended down 12.80% at $6.56 after the company said it would be open to a sale but is not actively pursuing one.

Advancing issues outnumbered declining ones on NYSE by 1.40 to one; on Nasdaq, a 1.03to-1 ratio favored advancers. The S&P 500 posted 98 new 52-week highs and no new lows; the Nasdaq Composite recorded 124 new highs and 26 new lows. —