cloudyn.png
Thursday December 12th, 2019 6:34PM

US stocks rise, led by technology and health care

By The Associated Press
Related Articles
  Contact Editor

U.S. stocks climbed Wednesday afternoon as technology and health care companies helped steer the market toward its third straight gain.

The broader market has been rebounding this week following its worst week since December. The Dow Jones Industrial Average joined other indexes in moving higher after it was weighed down for several days by drops in Boeing.

Shares in the aircraft maker slid 1.1 percent after President Donald Trump issued an emergency order Wednesday afternoon grounding all Boeing 737 Max 8 and Max 9 aircraft. The move follows the decision by several countries to ground the aircraft this week following Sunday's deadly crash of an Ethiopian Airlines 737 Max 8.

Chipmaker Nvidia added 3.4 percent, helping drive technology stocks higher. CVS Health rose 3.3 percent as health care stocks rose broadly. Synchrony Financial gained 1.9 percent amid a broad financial sector rally.

Several government reports gave investors an upbeat view of the economy. U.S. wholesale prices barely increased last month after falling for three straight months, a sign there is little inflation pressure in the economy. A report on orders to U.S. factories showed that business investment rose 0.8 percent after two months of declines, marking the biggest gain since a 1.5 percent July bump.

Investors are still waiting for details on a potential trade deal between the U.S. and China, and the British Parliament is set to vote on whether the country should crash out of the European Union on March 29 without a deal.

ANALYST'S TAKE: The latest batch of encouraging economic data kept investors in a buying mood, said Bob Doll, chief equity strategist at Nuveen.

"The durable goods orders were strong today, (the producer price index) was very well-behaved, mortgage applications are up more than expected, he said. "Even the eurozone industrial production index was less bad than feared. And you have oil prices moving up."

KEEPING SCORE: The Dow Jones Industrial Average rose 84 points, or 0.3 percent, to 25,638 as of 3:11 p.m. Eastern Time. The S&P 500 gained 0.7 percent and the Nasdaq composite climbed 0.8 percent.

Major stock indexes in Europe finished higher.

GROUNDED: Boeing shares skidded for the third straight day as the U.S. moved to temporarily ground all Boeing 737 Max 8 and Max 9 aircraft. Until now, the Federal Aviation Administration had been saying that it didn't have any data to show the jets are unsafe.

Many nations barred the Boeing 737 Max 8 from their airspace this week following Sunday's crash of an Ethiopian Airlines 737 Max 8, which killed 157 people.

A similar Lion Air plane crashed in Indonesia in October, killing 189 people.

Boeing shares slumped more than 11 percent in the first two days of this week. Despite the recent slide, the stock is still up 14.4 percent for the year.

EXECUTIVE PURGE: Rite Aid rose 2.4 percent after the drugstore chain announced a purge of its top management and plans to cut 400 full-time jobs.

CEO John Stanley will step down when the company finds a replacement. Chief Financial Officer Darren Kast and Chief Operating Officer Kermit Crawford are also among the executives leaving the company.

PELTZ SEES GREEN: The Canadian marijuana company Aurora Cannabis jumped 12.2 percent after it tapped hedge fund manager Nelson Peltz as an adviser.

Peltz is the CEO and a founding partner of Trian Fund Management. Aurora said he will help the company explore potential partnerships and advise its global expansion plans.

BRANCHING OUT: Oaktree Capital Group surged 12.2 percent on news that Brookfield Asset Management is buying 62 percent of the company. The deal creates a combined company with $475 billion assets and $2.5 billion in annual fee-related revenue, the companies said.

The deal includes options that could have Brookfield owning all of Oaktree by 2029.

IN THE BAG: Vera Bradley surged 21.9 percent after beating Wall Street forecasts for the fourth quarter and giving analysts a surprisingly good outlook for the year.

The maker of luggage and handbags reported lower sales during the quarter, but the results still topped forecasts. Both revenue and profit forecasts for the current fiscal push beyond Wall Street expectations.

NOT A GOOD LOOK: Express skidded 10.6 percent after the clothing chain reported weak fourth-quarter sales and gave investors a disappointing first-quarter outlook.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Coaches and parents in college scheme find jobs in danger
Colleges and companies are moving swiftly to distance themselves from employees swept up in a nationwide college admissions scheme
10:13PM ( 24 minutes ago )
Colgate beats Bucknell 94-80 for Patriot League title
Jordan Burns scores career-high 35 points and Will Rayman adds 18 to lead top-seeded Colgate to a 94-80 win over No. 2 Bucknell in the championship game of the Patriot League Tournament; Raiders going to NCAA Tournament for first time since 1996
10:05PM ( 33 minutes ago )
School rampage in Brazil leaves 8 dead, many wounded
Two young men, wearing hoods and carrying guns, knives and crossbows, opened fire at a school in a suburb of Brazil's largest city, killing five students and two adults before taking their own lives
10:04PM ( 33 minutes ago )
Associated Press (AP)
Charity masked web of fraudulent college donations, feds say
Prosecutors and tax documents say the mastermind of a wide-ranging college admissions scandal set up a charity that wove a deep web of deception and fraud to mask bribes
9:42PM ( 56 minutes ago )
Report: Power lines sparked massive Southern California fire
Fire investigators say one of the largest fires in California history was sparked by Southern California Edison power lines that came into contact during high winds
9:00PM ( 1 hour ago )
FAA relents, says it grounded 737 Max jets based on new data
FAA relents, grounds Boeing 737 Max jets after getting new satellite images and evidence from the ground
8:01PM ( 2 hours ago )
AP Business
US grounding of Boeing jet shows limits of company's clout
Trump administration's decision to follow other countries and ground Boeing 737 Max 8s illustrates the limits of the company's clout
5:32PM ( 5 hours ago )
Big tech companies cast as monopolies in UK government study
UK review of digital competition urges new rules to deal with power of tech giants
5:11PM ( 5 hours ago )
Grand Teton National Park pursuing disputed cell-tower build
Wyoming's Grand Teton National Park seeks comments on disputed network of cell towers
4:19PM ( 6 hours ago )
AP Business - Corporate News
Trump says US is in 'very good position' on trade with China
President Donald Trump dangles prospect of walking away from a new trade deal with China if it's not to his liking, much as he did during his summit last month with North Korean leader Kim Jong Un
5:42PM ( 4 hours ago )
The Latest: EU official says 'no-deal' vote wont halt Brexit
The European Commission is warning Britain's Parliament that voting against Brexit taking effect without a withdrawal deal in place isn't enough and lawmakers must approve the deal, too
4:23PM ( 6 hours ago )
The Latest: UK's May says next vote is on Brexit delay
British Prime Minister Theresa May says Parliament will vote Thursday on whether to seek a delay to Britain's March 29 departure from the European Union
4:10PM ( 6 hours ago )
AP Business - Economy
Asian shares fall amid continuing global uncertainties
Asian shares are lower amid continuing global uncertainties that weighed on stocks as some traders took profits from an earlier rally
2:21AM ( 20 hours ago )
US stock indexes end mostly higher, extending market's gains
Asian shares are lower amid continuing global uncertainties that weighed on stocks as some traders took profits from an earlier rally
10:23PM ( 1 day ago )
US stocks move higher, led by technology and health stocks
Technology and health care companies led U.S. stocks modestly higher in afternoon trading, extending the market's solid gains from a day earlier
3:38PM ( 1 day ago )
AP Business - Financial Markets
Coaches and parents in college scheme find jobs in danger
Colleges and companies are moving swiftly to distance themselves from employees swept up in a nationwide college admissions scheme
10:13PM ( 24 minutes ago )
Colgate beats Bucknell 94-80 for Patriot League title
Jordan Burns scores career-high 35 points and Will Rayman adds 18 to lead top-seeded Colgate to a 94-80 win over No. 2 Bucknell in the championship game of the Patriot League Tournament; Raiders going to NCAA Tournament for first time since 1996
10:05PM ( 33 minutes ago )
School rampage in Brazil leaves 8 dead, many wounded
Two young men, wearing hoods and carrying guns, knives and crossbows, opened fire at a school in a suburb of Brazil's largest city, killing five students and two adults before taking their own lives
10:04PM ( 33 minutes ago )
O'Rourke tells Texas TV station he's running for president
Democrat Beto O'Rourke has told a Texas TV station that he's running for president in 2020
10:03PM ( 35 minutes ago )
The Latest: USC bars from admission students tied to firm
The University of Southern California says it will bar from admission about half a dozen student applicants connected to a firm indicted in a sweeping college admissions scandal
9:55PM ( 43 minutes ago )