clear
Friday April 20th, 2018 10:00PM
7:21PM ( 2 hours ago ) News Alert

Technology, industrials and banks lead rally as stocks rise

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Technology companies, banks and industrial companies all rose Thursday as investors got ready for big banks to announce their first-quarter results and let go of some of their concerns about the trade dispute between the U.S. and China.

Big tech companies like Apple and Microsoft, the market's leaders over the last year, rose again. Industrial companies like Boeing and Caterpillar gained ground as well, with airlines climbing after Delta reported solid results in the first quarter. Bond prices dropped and interest rates rose, which helped banks.

Friday morning, JPMorgan Chase, Wells Fargo and PNC Financial Services will report their first batch of quarterly results since last year's corporate tax cut went into effect. Alicia Levine, head of global investment strategy at BNY Mellon Investment Management, said that's giving investors something new to focus on after almost six weeks of worrying about a trade war.

"Part of the reason that markets were strong this week is in anticipation of perhaps better than expected earnings," she said. Levine said she thinks companies are likely to beat Wall Street's expectations thanks in part to the lower tax rate.

The S&P 500 index gained 21.80 points, or 0.8 percent, to 2,663.99. The Dow Jones industrial average added 293.60 points, or 1.2 percent, to 24,483.05. The Nasdaq composite climbed 71.22 points, or 1 percent, to 7,140.25. The Russell 2000 index of smaller-company stocks advanced 10.52 points, or 0.7 percent, to 1,557.33.

The market has been jittery as investors worried about tariffs and other barriers to trade. Investors may have been pleased to hear that, according to a group of legislators, President Donald Trump asked advisers to explore the possibility of the U.S. rejoining trade talks with 11 Pacific nations. Those countries formalized a deal last month after Trump rejected the Trans-Pacific Partnership, an earlier agreement that involved the U.S.

The S&P 500, a benchmark that is used by many index funds, has fallen for three of the last four weeks, but it's up 2.3 percent so far this week as investors felt new proposals by Chinese President Xi Jinping could help avert a trade war. On Thursday China's government denied that Xi was trying to resolve the dispute and said negotiations with the U.S. aren't possible right now.

Levine, of BNY Mellon, said the tariffs the U.S. and China have proposed won't stop the growth of the U.S. economy, but they could cause real pain for some industries and investors sold stocks in response to that.

"If you use steel and aluminum, you might be less likely to open up another plant if you're a manufacturer," she said. "You might be less likely to raise wages."

Bond prices fell. The yield on the 10-year Treasury note rose to 2.84 percent from 2.79 percent. That helped banks because higher yields mean they can make more money from mortgages and other types of loans. Big dividend stocks like utilities and household goods companies fell, as investors see them as an alternative to bonds and they are less interested in buying them when yields rise.

Home goods retailer Bed, Bath & Beyond plunged after it gave a weak forecast for the fiscal year. The company also said it expects its earnings to decline next year and its stock fell 20 percent to $17.21. Online rival Amazon gained 1.5 percent to $1,448.50.

Oil prices continued to trade at three-year highs. Benchmark U.S. crude rose 0.4 percent to $67.07 a barrel in New York. Brent crude, used to price international oils, shed 0.1 percent to $72.02 a barrel in London.

Precious metals prices tumbled. Gold dropped 1.3 percent to $1,341.90 an ounce and silver fell 1.8 percent to $16.47 an ounce. Copper lost 1.7 percent to $3.06 a pound.

Wholesale gasoline lost 0.6 percent to $2.05 a gallon. Heating oil dipped 0.4 percent to $2.08 a gallon. Natural gas rose 0.4 percent to $2.69 per 1,000 cubic feet.

Bristol-Myers Squibb fell and Pfizer rose after an analyst for Citi Investment Research said a deal between the two drugmakers isn't likely to happen. Analyst Andrew Baum said he met with Pfizer's top executives Wednesday and don't want to buy Bristol-Myers or any other big company. Bristol-Myers lost 2.2 percent to $58.84, giving it a market value of $96 billion. Pfizer rose 1.5 percent to $36.52.

Drugmaker Mallinckrodt dropped after a former employee filed a whistleblower lawsuit against the company. Rasvinder Dhaliwal said Mallinckrodt asked her to mislead an insurance company so it would cover Acthar gel, a drug that brings in more than one third of Mallinckrodt's revenue, and said an executive acknowledged the company misled payers about what Acthar is made of.

The lawsuit says she had numerous other concerns about potentially illegal or improper behavior, but the company retaliated against her for bringing them up and ultimately fired her last month.

Mallinckrodt said it "vehemently disagrees with the allegations" and will defend itself in court. Its stock fell 6.8 percent to $13.89.

The dollar rose to 107.23 yen from 106.95 yen. The euro fell to $1.2329 from $1.2362.

The DAX in Germany rose 1 percent and France's CAC 40 added 0.6 percent. The FTSE 100 in Britain rose less than 0.1 percent. Japan's benchmark Nikkei 225 stock index dipped 0.1 percent while the Kospi in South Korea ended 0.1 percent lower. Hong Kong's Hang Seng fell 0.2 percent.

____

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: Local/State News, Associated Press (AP), AP World News, AP Business, AP Business - Corporate News, AP World News - International incidents, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care, AP Business - Utilities
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Popular national parks to raise fees to $35, not $70
The Interior Department is increasing fees at the most popular national parks to $35 per vehicle
4:19PM ( 4 minutes ago )
Technology, industrials and banks lead rally as stocks rise
Banks and technology and industrial companies help US stocks add to their gains from earlier in the week
4:17PM ( 6 minutes ago )
Trump, aides ponder Syria response; Mattis cites risks
President Donald Trump says a U.S. attack on Syria could happen "very soon or not so soon at all," while Defense Secretary Jim Mattis is warning such an attack carries the risk of spinning out of control
4:17PM ( 6 minutes ago )
Associated Press (AP)
UK's Cabinet says Syria chemical attack calls for 'action'
Britain's Cabinet has given gave Prime Minister Theresa May the green light to join the U.S. and France in planning military strikes in response to an alleged chemical weapons attack in Syria
3:45PM ( 37 minutes ago )
Iraqi monster tale in running for international Booker prize
A monster story set in a Baghdad torn apart by violence is among six contenders for the prestigious Man Booker International Prize for fiction
3:24PM ( 59 minutes ago )
The Latest: UK Cabinet says Syria attack needs response
British Cabinet has given Prime Minister Theresa May the green light to join the U.S. and France in planning military strikes in response to an alleged chemical weapons attack in Syria
3:20PM ( 1 hour ago )
AP World News
Volkswagen replaces CEO Mueller, announces new structure
Automaker Volkswagen is replacing CEO Matthias Mueller along with several other top managers and announcing a new management structure it said would enable faster decision making as autonomous and electric cars transform the industry
3:27PM ( 56 minutes ago )
US long-term mortgage rates flat to higher; 30-year 4.42 pct
Long-term U.S. mortgage rates were flat to slightly higher this week with the spring home buying season well underway. Mortgage buyer Freddie Mac says the average rate on 30-year, fixed-rate mortgages edged up to 4.42 percent from 4.40 percent last week.
2:57PM ( 1 hour ago )
$1 million federal grant will help study of transgender kids
Groundbreaking national study of transgender children, including some as young as 3, is poised to expand thanks to a five-year, $1 million grant awarded by the National Science Foundation to the professor leading the project
2:46PM ( 1 hour ago )
AP Business
Opioid trials to begin in 2019 as settlement is also pushed
In a shift, judge overseeing hundreds of lawsuits against opioid industry lays out plan for trials starting in 2019
2:01PM ( 2 hours ago )
Uber to up its background checks for drivers
Uber will start doing annual criminal background checks on U.S. drivers and hire a company that constantly monitors criminal arrests as it tries to do a better job of keeping riders safe
1:38PM ( 2 hours ago )
Stocks jump as technology, industrials and banks rally
US stocks are adding to their big gains earlier this week as banks and technology and industrial companies climb
12:57PM ( 3 hours ago )
AP Business - Corporate News
Trump says Syria attack 'very soon or not so soon at all!'
President Donald Trump says an attack on Syria could take place "very soon or not so soon at all!"
12:08PM ( 4 hours ago )
Trump: Syria attack 'very soon or not so soon at all!'
President Donald Trump says an attack on Syria could take place "very soon or not so soon at all!"
11:16AM ( 5 hours ago )
The Latest: Trump's national security team meets on Syria
President Donald Trump's national security team has met to discuss the U.S. response to the Syrian government's apparent use of chemical weapons on its own people
4:35PM ( 23 hours ago )
AP World News - International incidents
Report: Many state pension systems have huge funding gaps
A new study says that many state pension systems for government workers are badly underfunded, putting core state programs at risk
12:36PM ( 3 hours ago )
Macron: France must face up to new economic challenges
French President Emmanuel Macron said strikes and protests will not prevent him from implementing economic changes in the country _as train workers, hospitals staff, students, retirees, lawyers and magistrates are challenging his plans to change France
11:50AM ( 4 hours ago )
World trade body warns of 'domino effect' in US-China spat
The World Trade Organization warns that getting tough on trade can trigger a "domino effect" that could derail such goals in the first place.
10:10AM ( 6 hours ago )
AP Business - Economy
World stocks, oil price stabilize amid geopolitical concerns
Global stock markets recovered their poise Thursday and the price of oil came off three-year highs as investors digested U.S. President Donald Trump's defiant comments on the Middle East conflict.
7:41AM ( 8 hours ago )
Asian shares lower as markets mull Fed, geopolitical risk
Most Asian shares lower as investors digest latest Fed minutes while geopolitical concerns overshadow sentiment
3:06AM ( 13 hours ago )
Banks and technology stocks fall; oil rises to 3-year high
US stock indexes finish mostly lower as banks and technology and health care companies fall, but energy companies rise as oil prices hit a three-year high
5:52PM ( 22 hours ago )
AP Business - Financial Markets
California offshore oil firms hit with nearly 400 violations
An environmental group says oil and gas companies drilling off the coast of Southern California violated state regulations nearly 400 times in the past three years
5:20PM ( 23 hours ago )
Fed in March discussed 'slightly steeper' future rate hikes
Fed minutes: Officials in March discussed prospect of accelerating rate hikes to 'slightly steeper' path
4:17PM ( 1 day ago )
AP News Guide: Potential for escalation in Syria abounds
With the Middle East on edge amid fears of a potential regional war, it's easy to forget that not long ago President Donald Trump shocked advisers by declaring he would withdraw troops from Syria
4:08PM ( 1 day ago )
AP Business - Industries
Ex-spy's daughter released from British hospital
British media report that Yulia Skripal, one of two Russians poisoned by nerve agent, has been released from the hospital
9:22AM ( 2 days ago )
California bill would create health care price controls
California's government would set prices for health care services under a measure in the state Assembly
9:33PM ( 2 days ago )
Stocks rise, but biggest gains fade as market stays volatile
US stock indexes gave up most of a big gain in the afternoon but still finished slightly higher as technology companies and banks rallied
4:32PM ( 2 days ago )
AP Business - Health Care
France's Macron and Saudi prince discuss response to Syria
Crown Prince Mohammed bin Salman of Saudi Arabia joined French President Emmanuel Macron in expressing concerns Tuesday over the worsening conflicts in Yemen, Iran and especially Syria
6:33PM ( 1 day ago )
Stock indexes rally as China's president eases trade fears
US stocks jump after Chinese President Xi Jinping makes conciliatory remarks on trade, easing the market's fears about US-China trade tensions
5:43PM ( 1 day ago )
Stocks jump as China's president eases trade fight fears
US stocks rise after Chinese President Xi Jinping makes conciliatory remarks on trade, easing the market's fears about US-China trade tensions
3:12PM ( 2 days ago )
AP Business - Utilities
Oklahoma teachers shift from marching to running for office
Oklahoma teachers frustrated after years of swelling class sizes and funding cuts to public schools streamed into the state Capitol this week not just to protest, but also to run for political office
4:16PM ( 8 minutes ago )
Frustrated Oklahoma turn from marching to running for office
Oklahoma teachers frustrated after years of swelling class sizes and funding cuts to public schools streamed into the state Capitol this week not just to protest, but also to run for political office
4:13PM ( 11 minutes ago )
France mulls military action against Syria for gas attacks
France's President Emmanuel Macron said France has proof that the Syrian government launched chlorine gas attacks and has crossed a line that could prompt French airstrikes
4:09PM ( 15 minutes ago )
The Latest: Russia says military police now in Syrian town
Russia says its military police have begun operating in the Syrian city of Douma, following the pullout of anti-government fighters
3:57PM ( 27 minutes ago )
Popular national parks to raise fees to $35, not $70
The Interior Department is increasing fees at the most popular national parks to $35 per vehicle
3:52PM ( 31 minutes ago )