Tech, Health Lead Stocks to Records 11/21 15:57
The market's biggest winners this year, technology and health care, powered
U.S. stock indexes to more all-time highs on Tuesday.
NEW YORK (AP) -- The market's biggest winners this year, technology and
health care, powered U.S. stock indexes to more all-time highs on Tuesday.
Huge technology companies like Apple and Facebook continued their ascent,
while strong reports from companies including medical device maker Medtronic
and construction and technical services company Jacobs Engineering helped
health care and industrial companies, respectively.
Basic materials companies, which have done better than the rest of the
Standard & Poor's 500 index, also rose. Telecommunications companies declined,
while energy companies and banks didn't do as well as the rest of the market.
Apple, Facebook, Alphabet, Microsoft and Amazon, the five most valuable
companies on the stock market, all rose more than 1 percent, and they've all
had a very strong year. JJ Kinahan, chief market strategist at TD Ameritrade,
said that's not about to stop.
"They're seeing better earnings, better sales, better growth," he said.
"It's difficult to argue with that."
The S&P 500 index climbed 16.89 points, or 0.7 percent, to 2,599.03. The Dow
Jones industrial average gained 160.50 points, or 0.7 percent, to 23,590.83.
The Nasdaq composite added 71.76 points, or 1.1 percent, to 6,862.48.
The Russell 2000 index of smaller-company stocks rose for a fourth day and
picked up 15.49 points, or 1 percent, to 1,518.89. All four indexes set
records. The Russell had struggled in recent weeks, but on Tuesday it beat its
record close from early October.
Big-name technology companies lead the way overall. Apple rose $3.16, or 1.9
percent, to $173.14 and Facebook added $3.12, or 1.7 percent, to $181.86.
Health care companies climbed as well. Those two sectors are the
best-performing parts of the market this year.
Homebuilders climbed after the National Association of Realtors said sales
of homes grew in October. They're down slightly from last year because there
are so few houses on the market, but the tight supply and rising prices have
sent homebuilder stocks soaring this year. On Tuesday, NVR advanced $59.69, or
1.8 percent, to $3,377, while D.R. Horton gained $1.15, or 2.4 percent, to
Along with those reports, investors were cheered by projections from Goldman
Sachs analyst David Kostin, who forecast that the S&P 500 will rise 14 percent
in 2018 if corporate taxes are cut. Kostin, who didn't think stocks would rise
that much this year, now says the bull market could last three more years, with
continued economic growth and lower taxes taking the S&P 500 to 3,100 by the
end of 2020.
Kinahan, of TD Ameritrade, said the potential tax cuts might help stocks in
another way: usually, investors might sell some of their holdings after a
better-than-expected year like this one. But right now, they're not sure what
their taxes will look like in 2018.
"People may not be taking profits as aggressively at the end of this year as
they would in a normal year because they're not sure where the tax plan will
come out," he said.
Medtronic jumped after it posted profit that was larger than analysts had
expected. The company said sales of heart devices including newer devices like
its CoreValve Evolut Pro heart valve, drove its sales higher in the fiscal
second quarter. The stock rose $3.76, or 4.8 percent, to $82.66.
Signet Jewelers plunged $23.05, or 30.4 percent, to $52.79 after the company
slashed its annual forecast. The company recently sold its highest-quality
loans to Alliance Data Systems, but the company said "disruptions" related to
that move have affected sales, especially for its Kay brand.
Alliance Data Systems fell 83 cents to $223.84. Aaron's, which is running a
lease-payment program for other Signet customers, fell 54 cents, or 1.5
percent, to $36.20.
Campbell Soup's profit and sales both fell a bit short of analysts'
forecasts. The company reported a 9 percent drop in soup revenue and said
carrot costs increased. It also faced greater logistics costs in the aftermath
of the hurricanes. The stock shed $4.09, or 8.2 percent, to $45.84.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.36
percent from 2.37 percent.
Benchmark U.S. crude oil rose 41 cents to $56.84 a barrel in New York, while
Brent crude, the international standard, added 35 cents to $62.57 a barrel in
Wholesale gasoline climbed 3 cents to $1.77 a gallon. Heating oil was little
changed at $1.94 a gallon. Natural gas slipped 3 cents to $3.02 per 1,000 cubic
Gold rose $6.40 to $1,281.70 an ounce. Silver added 12 cents to $16.96 an
ounce. Both metals had taken sharp losses Monday. Copper rose 4 cents to $3.13
The dollar slipped to 112.44 yen from 112.67 yen. The euro rose to $1.1742
Germany's DAX gained 0.8 percent and the CAC 40 of France CAC 40 rose 0.5
percent. The FTSE 100 index in Britain rose 0.3 percent. Japan's Nikkei 225
rose 0.7 percent while the Kospi in South Korea added 0.1 percent. The Hang
Seng in Hong Kong rose 1.9 percent, its biggest gain in two months.