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Energy, technology stocks gain, sending U.S. indexes higher

Traders on the floor of the New York

Traders on the floor of the New York Stock Exchange, Wednesday, Nov. 9, 2016. Credit: AP / Richard Drew

U.S. stocks are rising Tuesday as the price of oil soars, sending energy companies higher. Big technology stocks, which have been mostly left out of a postelection rally, turned sharply higher. Microsoft, Facebook and Google’s parent company, Alphabet, all posted solid gains.

Bank stocks, which had soared over the past week, gave back some of those gains. Bond prices edged higher, sending long-term interest rates slightly lower. Bond prices had fallen sharply since the election over worries that President-elect Donald Trump’s spending plans would lead to higher inflation.

KEEPING SCORE: The Dow Jones industrial average lost 22 points, or 0.1 percent, to 18,847 as of 1:50 p.m. Tuesday on Wall Street as Boeing and Home Depot slid. The Standard & Poor’s 500 index rose 8 points, or 0.4 percent, to 2,171. The Nasdaq composite added 43 points, or 0.8 percent, to 5,261.

ENERGY: Energy companies led the market higher as oil prices made their biggest gain in six weeks. Benchmark U.S. crude gained $2.03, or 4.7 percent, to $45.35 per barrel in New York. Brent crude, used to price international oils, rose $1.93, or 4.3 percent, to $46.36 a barrel in London. Among energy stocks, Exxon Mobil rose $1.33, or 1.6 percent, to $86.62 and Apache added $3.81, or 6.5 percent, to $62.74.

CHANGING COURSE: Tuesday’s trading was a partial reversal of the moves investors have made since the presidential election one week ago. Tech stocks have been losing ground recently, but Microsoft picked up $1.03, or 1.8 percent, to $58.76 and graphics processor maker Nvidia rose $2.49, or 3 percent, to $86.13.

Bond prices rose and yields, which have reached their highest levels this year, slipped. The yield on the 10-year Treasury note declined to 2.22 percent from 2.27 percent. Companies that pay large dividends, like phone companies, also changed course and rose.

Banks returned some of their recent gains. JPMorgan Chase fell 95 cents, or 1.2 percent, to $78.56 and Wells Fargo gave up $1.15, or 2.2 percent, to $52.07.

THE QUOTE: “The market somehow decided ‘let’s give the Trump presidency a chance,” said John DeClue, chief investment officer for U.S. Bank’s private client reserve. However DeClue said the bond market could struggle with Trump in the White House: if taxes are cut and government spending rises sharply, that could lead to climbing deficits that would trouble investors in U.S. government debt.

SHOPPING DEAL: Equity One will combine with Regency Center in a deal that combines two real estate investment trusts that own shopping centers. The two companies have more than 400 properties, most of them anchored by grocery stores. Equity One climbed $2.19, or 7.9 percent, to $30.06 while Regency Center lost $2.37, or 3.4 percent, to $67.49.

BUFFET BUYS AIRLINES: Billionaire investor Warren Buffett’s Berkshire Hathaway bought stock in United Continental and American Airlines. Buffett has avoided the volatile industry in the past, but his holding company disclosed stakes in each company in a form filed with the Securities and Exchange Commission. United picked up $2.09, or 3.3 percent, to $65.03 and American gained $1.10, or 2.5 percent, to $44.50.

GROUNDED: Aerospace giant Boeing fell after United said that it will postpone delivery of 61 new Boeing 737 jets that it planned to buy. It will convert the orders to a new, more fuel-efficient model that Boeing calls the 737 Max. Boeing stock lost $2.49, or 1.7 percent, to $147.50.

RETAIL DETAILS: Retail sales climbed 0.8 percent in October as consumers spent more money on cars and home and garden supplies, among other types of products. Retail sales over last two months have been the strongest in more than two years, which shows consumers are still spending and the economy might grow more quickly in the fourth quarter than economists expect.

The report showed continued gains for online retailers. Amazon jumped $23.31, or 3.2 percent, to $742.38 while department stores traded lower as they continued to lose sales.

JD DEALING: Chinese e-commerce company climbed after it reported strong quarterly results. The company also said it might reorganize its JD Finance unit, which runs its internet finance business. said expects to sell its stake in the company and that JD Finance will be owned solely by Chinese investors. The stock climbed $2.87, or 12.1 percent, to $26.58.

UNPRINTABLE: 3D printer maker Stratasys tumbled after its profit and sales fell far short of estimates. The stock shed $3.37, or 16.4 percent, to $17.13.

GET YOUR MOTOR RUNNING: Auto parts retailer Advance Auto Parts reported better sales than investors were expecting, and its stock leapt $21.79, or 15.2 percent, to $164.69.

CURRENCIES: The dollar rose to 108.88 yen from 108.51 yen. The euro inched up to $1.0729 from $1.0726.

METALS: Gold rose $2.80 to $1,224.50 an ounce. Silver picked up 15 cents to $17.04 an ounce, while copper gave up 2 cents to $2.51 a pound.

OVERSEAS MARKETS: Britain’s FTSE 100 index rose 0.6 percent and the CAC-40 in France was also 0.6 percent higher. Germany’s DAX gained 0.4 percent. Seoul’s Kospi shed 0.3 percent and the Nikkei 225 in Japan finished little changed. Hong Kong’s Hang Seng gained 0.5 percent.


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