U.S. Equities Resume Advance as Financial, Phone Stocks Rallyby
Banks and phone companies pushed U.S. stocks higher for the eighth time in 10 days as investors weighed a rising dollar and prospects of a steeper path for higher borrowing costs next year. DuPont Co., Goldman Sachs Group Inc., American Express Co., and JPMorgan Chase & Co. led the Dow Jones Industrial Average with advances in excess of 1 percent.
The S&P 500 Index rose 0.4 percent to 2,262.03 at 4 p.m. in New York, after the benchmark fell 0.8 percent Wednesday. The Dow Jones Industrial Average added about 60 points, or 0.3 percent, to 19,852.
U.S. Stock Market
- Financial shares up 1% as raw-materials producers and phone shares rally 0.7%
- Russell 2000 Index rises 0.8% after losing 1.3% Wednesday
- While most observers had expected that the Fed would hike interest rates, they did not think the Federal Open Market Committee would materially change its September projection for two increases in 2017, Richard Clarida, Pimco’s global strategic adviser, wrote in a note
- “So while the Fed did hike its target for the federal funds rate to a range of 0.5 percent to 0.75 percent, the real message was delivered by the ‘dot plot,’ which moved unmistakably in the hawkish direction for 2017,” Clarida wrote
- Stocks fell Wednesday after key benchmarks -- the S&P 500, the Dow and the Nasdaq 100 -- all reached fresh records
- The S&P 500 hasn’t been this overextended in 2 1/2 years, with the spread between the index and its 200-day moving average reaching the widest since July 2014. Investors are showing few signs of worry: hedging costs are near the lowest since July 2014, the options market has seen record call volume, and short interest sits below its one-year average
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