Breaking News
0

Wall Street bounces back; technology, industrials lead

Stock MarketsJul 12, 2018 05:20PM 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 Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks climbed on Thursday as top technology names hit record highs and industrials rebounded from losses driven by trade worries the day before.

Helping the move in tech, CA Inc (NASDAQ:CA) jumped 18.7 percent and was the biggest percentage gainer in the S&P 500 after chipmaker Broadcom (NASDAQ:AVGO) announced a surprise $18.9-billion deal to buy the business software company. Broadcom slumped 13.7 percent.

Facebook (NASDAQ:FB), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) hit all-time highs and, along with Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL), drove gains in the S&P 500 and Nasdaq.

The technology index rose 1.8 percent, the day's best-performing sector, and the group is now leading year-to-date gains among sectors. The S&P industrials index rose 1.1 percent. Health care also gained about 1.1 percent.

Helping the tech sector is the view that those companies may be more immune to problems in the trade dispute, said Quincy Krosby, chief market strategist at Prudential Financial (NYSE:PRU) in Newark, New Jersey.

But also, she said, "The consensus is that negotiations will resume and there will be some sort of agreement between the U.S. and China. It could be naive, but that seems to be an emerging consensus within the market."

The United States late Tuesday threatened to impose tariffs on $200 billion worth of Chinese goods. China said on Thursday the two countries have not been in touch about restarting talks and while it does not want a trade war, it would fight if necessary.

Boeing (NYSE:BA) and Caterpillar (NYSE:CAT), among the hardest hit by the trade dispute, rose more than 1 percent each on Thursday, boosting the Dow.

The Dow Jones Industrial Average rose 224.44 points, or 0.91 percent, to 24,924.89, the S&P 500 gained 24.27 points, or 0.87 percent, to 2,798.29 and the Nasdaq Composite added 107.31 points, or 1.39 percent, to 7,823.92.

The stock market value of Microsoft, which jumped 2.2 percent to $104.19, also rose above $800 billion for the first time, joining Apple, Amazon and Alphabet in that $800 billion club and putting it in line as a contender to be the first U.S. company to reach a $1 trillion market cap.

Earnings will take center stage Friday, when some big Wall Street banks, including JPMorgan Chase (NYSE:JPM), report results. S&P 500 companies overall are expected to post second-quarter profit growth of around 21 percent, according to Thomson Reuters data.

Delta Air Lines (NYSE:DAL) rose 1.8 percent, and lifted other airline stocks, after the carrier's quarterly profit topped estimates on higher average fares.

In a sign that labor market conditions remained robust in early July, weekly jobless claims hit a two-month low last week, the Labor Department said.

The consumer price index barely rose in June, but the underlying trend continued to point to a steady buildup of inflation pressure that could keep the Federal Reserve on a path of gradual interest rate increases.

Advancing issues outnumbered declining ones on the NYSE by a 1.75-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored advancers.

The S&P 500 posted 36 new 52-week highs and three new lows; the Nasdaq Composite recorded 101 new highs and 43 new lows.

About 5.8 billion shares changed hands on U.S. exchanges. That compares with the 6.9 billion daily average for the past 20 trading days, according to Thomson Reuters data.

Wall Street bounces back; technology, industrials lead
 

Related Articles

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