Breaking News
0

Intel, healthcare shares boost lift Wall St. to record

Stock MarketsJan 26, 2018 04:22PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Traders work on the floor of the NYSE in New York

By Chuck Mikolajczak

NEW YORK (Reuters) - The latest round of strong earnings reports, including from Intel and AbbVie, along with continued weakness in the dollar lifted each of the major Wall Street indexes to closing records on Friday.

The three main indexes notched their best four-week run since 2016.

Intel's (O:INTC) shares surged as high as $50.15, their highest level since October 2000, and closed up 10.55 percent at $50.08 after results indicated that the chipmaker's shift to higher-margin data-center business was working.

AbbVie's (N:ABBV) shares jumped 13.77 percent after the drugmaker significantly boosted its 2018 earnings forecast with help from U.S. tax reform and said it hopes to accelerate dividend growth and share buybacks.

"We continue to see these positive steps in the right direction and definitely earnings are clearly justifying a lot of the recent move that we’ve had," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.

Fourth-quarter earnings growth for the S&P 500 is now estimated at 13.2 percent, according to Thomson Reuters data, up from 12 percent at the start of the year. Of the 133 companies in the index that have reported through Friday, 79.7 percent have topped expectations.

The earnings enabled investors to shrug off a reading on economic growth that came in below expectations.

Gross domestic product increased at a 2.6 percent annual rate in the fourth quarter, the Commerce Department said in its advance GDP report, below the 3-percent forecast, as the strongest pace of consumer spending in three years resulted in a surge in imports.

"You have manufacturing and the consumer doing well at the same time and the globe is doing better, so that's a path for future GDP gains, which has always provided a fertile backdrop for earnings gains," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management in Milwaukee.

Weakness in the dollar, which is supportive for large multinational companies, continued. The greenback was down 0.34 percent against a basket of major currencies.

The dollar was on track for its worst week since May after comments from senior U.S. officials this week backing a weak currency.

The Dow Jones Industrial Average (DJI) rose 223.92 points, or 0.85 percent, to 26,616.71, the S&P 500 (SPX) gained 33.62 points, or 1.18 percent, to 2,872.87 and the Nasdaq Composite (IXIC) added 94.61 points, or 1.28 percent, to 7,505.77.

For the week, the Dow rose 2.08 percent, the S&P 500 gained 2.22 percent and the Nasdaq advanced 2.31 percent.

Buoyed by AbbVie, the S&P healthcare index (SPXHC) gained 2.17 percent, scored its best day since November 2016 and was the best performer among the 11 major S&P sectors.

Also lifting the index were gains in Pfizer (N:PFE), up 4.78 percent after a European regulator recommended granting marketing approval to a diabetes drug developed by the company and Merck (N:MRK), up 1.21 percent.

Starbucks (O:SBUX) dropped 4.23 percent after it warned 2018 global cafe sales growth would be at the low end of its forecast.

Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.54-to-1 ratio favored advancers.

The S&P 500 posted 125 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 178 new highs and 22 new lows.

Volume on U.S. exchanges was 6.58 billion shares, compared to the 6.81 billion average for the full session over the last 20 trading days.

Intel, healthcare shares boost lift Wall St. to record
 

Recommended

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email