FINANCIAL MARKETS
U.S. stocks closed sharply higher Thursday, snapping a two-day losing streak.
Investors cheered strong quarterly earnings from Wal-Mart Stores, Cisco Systems and other companies. Technology stocks accounted for much of the market’s gains, which helped lift the Nasdaq composite to its first record high in just over a week. Health care companies and consumer product makers also posted solid gains. Energy and utilities stocks lagged. Oil prices declined.
The rally knocked the major stock indexes into positive territory for the month, as investors seized on the encouraging company earnings news to buy shares a day after the market suffered its worst decline in two months. The Standard & Poor’s 500 index rose 21.02 points, or 0.8 percent, to 2,585.64. The Dow Jones industrial average gained 187.08 points, or 0.8 percent, to 23,458.36. The Nasdaq added 87.08 points, or 1.3 percent, to 6,793.29. The Russell 2000 index of smaller-company stocks picked up 22.79 points, or 1.6 percent, to 1,486.88. The major stock indexes were poised to rebound from the start of trading Thursday following solid gains in markets in Europe and Asia. Investors shrugged off the prior day’s doldrums and welcomed latest batch of strong corporate earnings or outlooks.
Cisco Systems also delivered a bigger profit than analysts expected. The internet gear maker also said revenue should grow in the current quarter after two years of declines. Cisco shares climbed 5.2 percent, its biggest gain since February 2016. The stock added $1.77 to $35.88.
Wal-Mart also got a big boost, climbing 10.9 percent, its biggest gain since October 2008. In addition to posting strong third-quarter results, the retail giant raised its annual profit outlook. The stock rose $9.79 to $99.62. The focus now moves to the Senate, where lawmakers were working on a different version of a tax reform bill. Both the House and Senate versions of the legislation would slash the 35 percent corporate tax rate to 20 percent and reduce some personal taxpayers’ rates.
Expectations of a big business tax cut have helped lift the market higher this year, though the Thursday afternoon House vote didn’t move the market’s much.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.37 percent from 2.32 percent late Wednesday.
Energy prices declined. Benchmark U.S. crude slipped 19 cents to settle at $55.14 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, slid 51 cents to $61.36 a barrel in London.
Wholesale gasoline gave up 3 cents to $1.71 a gallon. Heating oil dipped a penny to $1.90 a gallon. Natural gas declined 3 cents to $3.05 per 1,000 cubic feet.