clear
Saturday November 25th, 2017 2:45AM

US stocks higher as banks and technology companies rebound

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — U.S. stocks are rising Thursday as technology companies and banks advance. European stocks are climbing after the European Central Bank said it will begin gradually reducing the bond purchases it's been making to strengthen the regional economy. The market is regaining a chunk of the previous day's losses following a round of improved company earnings, but drugmakers are skidding.

KEEPING SCORE: The Standard & Poor's 500 index rose 4 points, or 0.2 percent, to 2,561 as of 3:30 p.m. Eastern time. The Dow Jones industrial average gained 88 points, or 0.4 percent, to 23,417. The Nasdaq composite lost 3 points, or 0.1 percent, to 6,650 as health care companies declined. The Russell 2000 index of smaller-company stocks added 3 points, or 0.2 percent, to 1,496.

BONDS: Bond prices edged lower. The yield on the 10-year Treasury note rose to 2.45 percent from 2.44 percent as yields and interest rates remained at seven-month highs. Banks had fallen with the rest of the market on Wednesday in spite of a jump in bond yields, but higher rates mean banks can make larger profits from mortgages and other lending.

JPMorgan Chase rose 98 cents, or 1 percent, to $101.99 and Northern Trust gained $1.02, or 1.1 percent, to $95.78.

I'M OK, EURO-K: Investors were pleased with the European Central Bank's actions. The bank said it will cut its bond purchases in half, to 30 billion euros a month, starting in January. But it plans to continue making those purchases until at least September and could increase them again if the regional economy runs into trouble. France's CAC-40 jumped 1.5 percent and the DAX in Germany gained 1.4 percent. Britain's FTSE 100 added 0.5 percent.

The euro fell to $1.1657 from $1.1807 as investors think interest rates in Europe will stay lower for longer than they had expected. The weaker euro is good news for companies that export goods from Europe to other areas.

THE QUOTE: Scott Wren, senior global equity strategist for Wells Fargo Investment Institute, said investors were relieved the bank did not announce a bigger cut in bond purchases or take more aggressive steps.

"The market was a little bit fearful that the ECB was going to be more hawkish," he said. "That wasn't the case."

Still, Wren said the ECB and the Federal Reserve might both end up raising interest rates further and faster than investors currently expect. Concerns about higher interest rates helped push stocks lower on Wednesday and Wren said the same fears could have a big effect on stocks in 2018.

"The market should be worried about the Fed raising rates three times next year like they've hinted, even though the market hasn't believed that," he said.

FRIGHTENING FORECAST: Drugmaker Celgene plunged after it reduced its forecasts for this year, partly because it expects weaker sales of its critically important new psoriasis treatment Otezla. Celgene also said it won't meet its longer-term goals: it cut its profit and sales projections for the year 2020 as it anticipates weaker sales of new products and medications to treat cancer and inflammation. It now expects $19 billion to $20 billion in revenue that year, below its previous target of at least $21 billion.

Celgene stock lost $24.51, or 20.5 percent, to $95.03. Bristol-Myers Squibb lost $3.27, or 5.1 percent, to $60.73 after it reduced its annual forecast. Competitor Amgen fell $2.07, or 1.2 percent, to $175.43.

MATERIAL WORLD: Materials companies also climbed after a round of strong company results. Dow DuPont jumped $2.14, or 3 percent, to $73.23 and Air Products and Chemicals, which sells gases for industrial, medical and other uses, gained $6.51, or 4.2 percent, to $161.10.

OPIOID CRISIS: Drugstores and prescription drug distributors sank following President Donald Trump's remarks about the opioid crisis. He described it as a national public health emergency and said companies that are considered "bad actors" could be sued. He did not detail how that determination might be made.

CVS Health tumbled $3.08, or 4.1 percent, to $72.46 and Walgreens fell $2.32, or 3.3 percent, to $67.04. Prescription drug distributors had made strong gains earlier in the day after solid results from McKesson, but in afternoon trading McKesson dropped $4.57, or 3 percent, to $146.81 and AmerisourceBergen shed $3.74, or 4.5 percent, to $78.48. Cardinal Health lost $2.12, or 3.2 percent, to $64.93.

ENERGY: Benchmark U.S. crude added $52.64 a gallon in New York. Brent crude, used to price international oils, rose 86 cents, or 1.5 percent, to $59.30 a barrel in London.

Wholesale gasoline rose 2 cents to $1.75 a gallon. Heating oil picked up 2 cents to $1.84 a gallon. Natural gas fell 3 cents to $2.89 per 1,000 cubic feet.

METALS: Gold gave up $9.40 to $1,269.60 an ounce. Silver fell 11 cents to $16.81 an ounce. Copper lost 1 cent to $3.18 a pound.

ASIA: Japan's benchmark Nikkei 225 index edged 0.2 percent higher while South Korea's Kospi dipped 0.5 percent. The Hang Seng in Hong Kong slipped 0.4 percent.

The dollar rose to 114 yen from 113.72 yen.

___

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US stocks higher as banks and technology companies rebound
Stocks are higher as technology companies and banks regain some of their losses from the day before following a better round of company earnings
2:18PM ( 6 minutes ago )
Fox gives heavy coverage to Weinstein, little to O'Reilly
Fox News has given little coverage to Bill O'Reilly, the alleged sexual harasser in its midst, while devoting considerable time to the Harvey Weinstein scandal
2:15PM ( 8 minutes ago )
Speaker: People don't care about senator's Trump criticism
House Speaker Paul Ryan says Americans aren't interested in a Republican senator's scathing criticisms of President Donald Trump
2:14PM ( 9 minutes ago )
Associated Press (AP)
US agrees to pay tea party groups in suits over IRS scrutiny
The Trump administration has agreed to a "very substantial" payout and is apologizing to tea party groups _ part of proposed settlements to suits over the extra IRS scrutiny they received when applying for tax-exempt status during the 2012 election.
1:48PM ( 35 minutes ago )
Twitter toughens abuse rules - and now has to enforce them
Twitter has toughened its rules against abuse; now it just needs to enforce them
1:36PM ( 48 minutes ago )
The Latest: Catalan leader urged to give dialogue a chance
The leader of the opposition Socialists in the Catalan parliament is urging Catalonia's separatist leader to take one last chance to open a dialogue with Spain's central government to prevent a takeover by Spanish authorities
1:27PM ( 57 minutes ago )
AP Business
The Latest: White House praises GOP budget passage by House
The White House is praising the House passage of a budget as a necessary step for a tax overhaul
12:15PM ( 2 hours ago )
European Central Bank to reduce stimulus _ but slowly
The European Central Bank will ease the pace of its bond-buying stimulus program _ dialing back a measure that has helped the eurozone economy recover from a debt crisis that threatened to break up the bloc
10:49AM ( 3 hours ago )
US pending home sales flat in September
US signed contracts to buy homes were flat in September, reflecting ongoing shortage of homes listed
10:19AM ( 4 hours ago )
AP Business - Economy
US 30-year mortgage rates rise to 3.94 percent
US 30-year mortgage rates rise to 3.94 percent, higher than a year ago but still below historic average
10:57AM ( 3 hours ago )
World shares drift as Europe central bank meeting looms
World stock markets drift on uneven earnings reports; investors awaiting European Central Bank meeting
5:14AM ( 9 hours ago )
Weak earnings and rising bond yields send US stocks down
US stocks sink on weak quarterly results from a variety of different industries, with the steepest drops going to technology companies and industrial firms
4:46PM ( 21 hours ago )
AP Business - Financial Markets
Deutsche Boerse CEO Kengeter to step down amid investigation
The chief executive of Frankfurt stock exchange operator Deutsche Boerse has decided to step down amid an investigation of suspected insider trading
10:22AM ( 4 hours ago )
The Latest: European Central Bank to dial back stimulus
The European Central Bank says it will cut its bond purchases to 30 billion euros per month from 60 billion euros currently, starting in January
7:52AM ( 6 hours ago )
10 Things to Know for Today
Among 10 Things to Know: House GOP moves to pass budget, start tax debate; Trump coy on what's coming out on JFK assassination; Thailand grieves in elaborate final goodbye to King Bhumibol
7:44AM ( 6 hours ago )
AP Business - Industries
FDA rejects muscular dystrophy drug, says it doesn't work
U.S. regulators reject experimental drug for Duchenne muscular dystrophy.
4:27PM ( 21 hours ago )
Banks, Caterpillar and industrial companies boost US stocks
US stocks rise as banks, industrial and technology companies move higher, and big gains from Caterpillar and 3M take the Dow Jones industrial average to a record high
4:41PM ( 1 day ago )
Stocks rise as industrial companies Caterpillar and 3M jump
US stocks are rising as industrial companies including Caterpillar, 3M and Stanley Black & Decker climb following strong third-quarter reports
3:33PM ( 1 day ago )
AP Business - Health Care
Fox gives heavy coverage to Weinstein, little to O'Reilly
Fox News has given little coverage to Bill O'Reilly, the alleged sexual harasser in its midst, while devoting considerable time to the Harvey Weinstein scandal
2:15PM ( 9 minutes ago )
Speaker: People don't care about senator's Trump criticism
House Speaker Paul Ryan says Americans aren't interested in a Republican senator's scathing criticisms of President Donald Trump
2:14PM ( 9 minutes ago )
Twitter to ban ads from Russia's RT, Sputnik
Twitter says it will ban ads from Russia Today and Sputnik, two state-sponsored Russian news outlets that the U.S. intelligence community has said tried to interfere with the 2016 U.S. presidential election
1:58PM ( 25 minutes ago )
Officials say Trump's opioid emergency won't mean new money
White House officials say President Donald Trump will direct his health department to declare the opioid crisis a nationwide public health emergency
1:56PM ( 28 minutes ago )
Dunkin' CEO: We will always make the doughnuts
Even though it is considering dropping "Donuts" from its name, the sweet treats won't be disappearing from the Dunkin' Donuts menu.
1:55PM ( 29 minutes ago )