Tech and in­dus­trial firms lead stocks back from losses

Miami Herald - - FRONT PAGE -

NEW YORK — North Korea’s latest mis­sile launch jolted the U.S. stock mar­ket 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. It’s be­lieved to be the first time the coun­try has sent a mis­sile over Ja­pan, and it seemed de­signed to show that North Korea can back up a threat to tar­get the U.S. ter­ri­tory of Guam. 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 Dow Jones in­dus­trial av­er­age fell 134 points when the mar­ket opened.

And in­vestors’ fears eased as the day went on. As the dol­lar de­clined to two-and-a-hal­fyear lows, com­pa­nies that do a lot of busi­ness out­side the U.S. climbed. A weaker dol­lar boosts their sales and helps their prof­its when they are con­verted back into dol­lars.

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 smaller-com­pany 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.

The dol­lar has weak­ened in part be­cause a lot of economies in other re­gions are get­ting stronger, which boosts their cur­ren­cies. The dol­lar is down al­most 10 per­cent in 2017, at its low­est point in more than a year and the euro is at two-year highs.

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.

Bench­mark U.S. crude gave up 13 cents to $46.44 a bar­rel in New York. 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.

Sport­ing goods com­pa­nies tum­bled again af­ter Fin­ish Line forecast weak sec­ond-quar­ter re­sults and slashed its fore­casts for the rest of the year. The re­tailer said dis­counts on shoes are grow­ing, and its stock tum­bled $1.92, or 18.4 per­cent, to $8.50.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.