U.S. Stocks Advance on Bank Stock Rally as Dow Surpasses 20,000By
U.S. stocks rose Wednesday, carrying forward a global equity rally that’s propelled by expectations of stronger economic growth and government spending by President Donald Trump’s administration.
The S&P 500 advanced 0.8 percent to 2,298.37 at 4 p.m. in New York after adding 0.7 percent on Tuesday. The Dow Jones Industrial Average, which has hovered below the 20,000 mark since mid-December without crossing it, broke through the threshold with a 0.8 percent advance to 20,068.51.
- Financial shares lead market, up 1.7% with gains of 3.5% in Wells Fargo and a 2.6% rally in Morgan Stanley
- Tech stocks rose 1.1%, advancing for the fourth straight session as Seagate Technology surged 14% and chip-makers advanced
- In the Dow, Boeing and Caterpillar led an advance that lifted all but seven stocks
- VIX down 2.4% to 10.8, the lowest since July 2014
- The world’s largest economy will expand 2.3% this year, accelerating from 1.6% growth last year, according to economist estimates compiled by Bloomberg
- The surge in shares of raw-material producers Tuesday came as traders unwound hedges in the SPDR Materials Select Sector ETF, which tracks raw-material producers in the S&P 500
- Short interest on the fund sits at 4.7% of shares outstanding, just 2.2 percentage points from its level on Dec. 23, which marked the lowest since August 2014; the measure has seen an average of 9% since the start of the bull market
- March will be a key month for U.S. stocks as it will signal maximum optimism in the market in terms of potential earnings revisions, David Kostin, a strategist at Goldman Sachs, told Bloomberg TV
- After-market Wednesday: Crown Castle International (CCI), Murphy Oil (MUR), Vertex Pharmaceuticals (VRTX), Varian Medical Systems (VAR), United Rentals (URI), SL Green Realty (SLG), Qualcomm (QCOM), AT&T (T), McKesson (MCK), Xilinx (XLNX), Las Vegas Sands (LVS), ServiceNow (NOW), F5 Networks (FFIV), Lam Research (LRCX), Citrix (CTXS), Western Digital (WDC), eBay (EBAY)
- Pre-market Thursday: Helmerich & Payne (HP) Northrop Grumman (NOC), PulteGroup (PHM), Praxair (PX), Blackstone Group (BX), Stanley Black & Decker (SWK), Alliance Data Systems (ADS), L3 Technologies (LLL), JetBlue Airways (JBLU), Royal Caribbean Cruises (RCL), Whirlpool (WHR), Caterpillar (CAT), Baker Hughes (BHI), American Electric Power (AEP), Southwest Airlines (LUV), Quest Diagnostics (DGX), Dow Chemical (DOW), Invesco (IVZ), Sherwin-Williams (SHW), Ford Motor (F), Comcast (CMCSA), Lear (LEA), Dover (DOV), Bristol-Myers Squibb (BMY), Biogen (BIIB), Raytheon (RTN), T Rowe Price (TROW), Celgene (CELG), Mead Johnson Nutrition (MJN US)
For related equity market news:
- Birinyi Says Dow Leadership Looks Bullish Amid Trip Past 20,000
- Dow Jones Industrial Average Breaks Past 20,000 for First Time
- Use Collars, Buy Calls on Volatility With Swings Subdued: MKM
- European Stocks Join Global Rally as Investors Bet on Economy
— With assistance by Blaise Robinson
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