Techs boost S&P and Nasdaq to records

Asurge in technology stocks sent the S&P 500 and the Nasdaq to record highs yesterday, but the gains were kept in check by a drop in banks as Wells Fargo missed revenue estimates for a fourth straight quarter.

At 9:42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 30.54 points, or 0.13 per cent, at 22,871.55, the S&P 500 was up 2.3 points, or 0.09 per cent, at 2,553.23 and the Nasdaq Composite was up 12.44 points, or 0.19 per cent, at 6,603.95.

Six of the 11 major S&P sectors were higher, led by 0.6 per cent gains in the energy index as oil prices rose.

Wells Fargo tumbled 3 per cent, set for its biggest drop since mid-April, adding to the pressure on bank stocks after results from JPMorgan and Citigroup on Thursday stoked concerns about consumer credit.

Bank of America, however, bucked the trend, rising 0.5 per cent after the lender’s profit topped estimates due to higher interest rates and a drop in costs.

The reports from the Wall Street banks kicked off the earnings season and investors are hoping profit growth will help justify valuations after a rally that has sent the S&P 500 up about 14 per cent so far this year.

The market got a boost earlier in the day after data showed retail sales surged by the most in 2-1/2 years in September, easing doubts over an economy that has been sluggish this year.

Another report showed consumer prices recorded their biggest increase in eight months last month as gasoline prices soared in the wake of hurricane-related production disruptions.