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Stocks Climb

Stocks ClimbStocks Climb

US stocks rose to records, with the Dow Jones Industrial Average climbing within 10 points of 18,000, as better-than-estimated payrolls data overshadowed declines in energy shares.

JPMorgan Chase & Co. and Goldman Sachs Group Inc. had the biggest gains in the Dow as banks rallied. Starbucks Corp. jumped 2.8 percent to a record.

Apache Corp. and Chevron Corp. dropped at least 1.2 percent as energy shares declined for a second day. Google Inc. lost 2.2 percent after Bank of America Corp. downgraded the shares.

The Standard & Poor’s 500 Index added 0.2 percent to 2,075.37 at 4 pm in New York, paring an earlier rally of 0.4 percent. The Dow rose 58.69 points, or 0.3 percent, to 17,958.79.

The Russell 2000 Index climbed 0.8 percent. About 6.2 billion shares changed hands on US exchanges, 8.5 percent below the three-month average.

The S&P 500 gained 0.4 percent this week, a seventh straight advance, its longest winning streak in a year. It has rebounded 11 percent from a low in October amid speculation the U.S. economy is strong enough to withstand a slowdown overseas and tighter monetary policy after the Fed wound up its asset-purchase program.

  Financial Shares

US stocks fell from records yesterday as European Central Bank President Mario Draghi said policy makers will wait until early next year to assess the need for further stimulus. The comments disappointed some investors seeking faster action.

Equities began to pare Saturday’s rally after S&P cut its rating on Italy, citing low growth and an increase in the country’s debt. Energy shares slumped 1.2 percent as a group as oil tumbled to a five-year low.

Nabors Industries Ltd and Marathon Petroleum Corp. posted the biggest losses among energy companies in the S&P, losing at least 4.7 percent. Chevron Corp. slid 1.3 percent, the most in the Dow.

Phone companies sank 0.2 percent and utilities dropped 0.8 percent as investors sold equities with high dividends.

Five of the 10 main industries in the S&P 500 advanced. Financial shares climbed 1 percent for the biggest gains.

Starbucks gained 2.8 percent. The world’s biggest coffee-shop operator detailed its plans to boost US sales. Seattle-based Starbucks aims to double food revenue to more than $4 billion in the next five years, the company told investors at a conference.

Apache Corp. declined 2.6 percent. Bank of America Corp. analysts cut their rating on the stock to underperform from neutral, after shares of the energy company fell 40 percent since July amid cheapening oil.

Google Inc. slid 2.2 percent, the biggest decline since October.

 

Financialtribune.com