Tuesday, 22 November 2016

Nasdaq hits record high as Wall Street rises with oil prices

Wall Street rose on Monday morning, with the Nasdaq hitting a record intraday high, helped by a jump in technology shares and as higher oil prices boosted energy stocks.

The S&P was less than one point away from its intraday record high, while the Dow also inched closer to its record. The three indexes have rallied since the U.S. election as investors bet Donald Trump's policies would be market friendly.

Oil prices jumped 3.2 percent to a near three-week high of $48.30 per barrel amid hopes of the OPEC reaching an agreement to cut output. The dollar index's .DXY first drop in 11 days also helped.

The energy index .SPNY dominated the gainers among the 11 major S&P sectors, rising 1.2 percent. Chevron and Exxon  rose 1.4 percent each.

The technology index .SPLRCT rose 0.58 percent, boosted by, Facebook  and Microsoft

"Investors are playing out their beliefs, which in this case is that Trump is going to bring about tax cuts and policy changes that could result in a solid equity market," said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.

"This rally could end anytime, but, for the moment, the enthusiasm is still there."

At 9:39 a.m. ET , the Dow Jones Industrial Average .DJI was up 52.6 points, or 0.28 percent, at 18,920.53. Its record intraday high stands at 18,934.05.

The S&P 500 .SPX was up 9.75 points, or 0.45 percent, at 2,191.65. The index's record high is 2,193.81.

The Nasdaq Composite .IXIC was up 28.86 points, or 0.54 percent, at 5,350.37, easing slightly after a record of 5,359.56.

Tyson Foods was the biggest loser on the S&P, dropping nearly 16 percent after the meat processor reported lower-than-expected profit and said its chief executive officer would step down.

LifeLock jumped 14.4 percent to $23.70 after Symantec said it would buy the identity theft protection services company for $2.3 billion. Symantec was flat.

Headwaters  rose 15.9 percent to $23.29 after Australia's Boral Ltd said it would buy the U.S. construction and building products maker for $1.8 billion.

Facebook rose 1.24 percent to $118.47 after announcing a $6 billion share repurchase program.

Advancing issues outnumbered decliners on the NYSE by 2,205 to 500. On the Nasdaq, 1,541 issues rose and 730 fell.

The S&P 500 index showed 27 new 52-week highs and two new lows, while the Nasdaq recorded 112 new highs and three new lows.

Reference: Yashaswini Swamynathan

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