Today's Market: US Stocks Start 2018 With Gains As Technology Leads Again
NEW YORK (AP) — U.S. stocks are starting the new year higher thanks in part to gains in technology and health care companies, some of the market's biggest winners from 2017. Retailers are up as well. Natural gas prices are rising as cold weather continues to grip much of the U.S. Bond yields are also rising. Asian stocks climbed following strong economic data from China.
KEEPING SCORE: The Standard & Poor's 500 index rose 17 points, or 0.7 percent, to 2,691 as of 11:10 a.m. Eastern time as investors got back to trading following a break for New Year's Day on Monday. The S&P 500 is once again trading around record highs after its 19 percent climb in 2017. The Dow Jones industrial average climbed 65 points, or 0.3 percent, to 24,784. The Nasdaq composite jumped 84 points, or 1.2 percent, to 6,988. The Russell 2000 index of smaller-company stocks gained 14 points, or 0.9 percent, to 1,549.
CAN THEY DO IT AGAIN: Facebook rose $3.42, or 1.9 percent, to $179.88 and chipmaker Nvidia advanced $4.28, or 2.2 percent, to $197.78 as technology companies climbed further. The technology index of the S&P 500 surged almost 37 percent last year as big names including Facebook, Apple and Microsoft reached all-time highs. The Nasdaq climbed 28 percent.
Drug and medical device companies lead the health care sector. Hepatitis C and HIV drug maker Gilead Sciences gained $2.43, or 3.4 percent, to $74.07. Abbott Laboratories, which sells medications, infant formula and medical devices, picked up $1.74, or 3 percent, to $58.81 and Baxter International gained $2.43, or 3.8 percent, to $67.07.
Retailers also moved higher. Amazon added $13.41, or 1.1 percent, to $1,182.88. Target rose $2.20, or 3.4 percent, to $67.45 and Kohl's added $1.89, or 3.5 percent, to $56.12. Early indications suggest shoppers had a busy holiday season and investors will look for confirmation of those reports in the weeks to come. Media companies also did well in the early going. Netflix jumped $7.63, or 4 percent, to $199.59.
BONDS: Bond prices slid. The yield on the 10-year Treasury note rose to 2.46 percent from 2.41 percent. The yield on 2-year note rose to 1.91 percent from 1.89 percent.
The increase in bond yields sent high-dividend stocks like utilities, household goods makers and real estate companies lower. Higher bond yields make those stocks less appealing to investors seeking income.
The Federal Reserve expects to keep raising interest rates this year. If so, it will do it under new leadership, as Fed governor Jerome Powell will replace Chair Janet Yellen in February.
FORCE-FUL PERFORMANCE: On the last day of the year, "Star Wars: The Last Jedi" surpassed "Beauty and the Beast" as the top grossing film in North America in 2017. Its gross will reach $1 billion in the next few days even before the movie opens in China. Both "The Last Jedi" and the live-action "Beauty and the Beast" were made by Disney, which rose $2.73, or 2.5 percent, to $110.24.
NEW YEARS' RESOLUTION: Weight Watchers International climbed after it struck a deal with producer and recording artist DJ Khaled, who will represent the brand to millions of follows on Snapchat, Twitter, Instagram and Facebook. Weight Watchers got a big boost a few years ago from a deal with Oprah Winfrey that also included a substantial investment in the company. Its stock added $2.11, or 4.8 percent, to $46.39.
ENERGY: Benchmark U.S. crude dipped 20 cents to $60.22 a barrel in New York. Brent crude, used to price international oils, fell 39 cents to $66.48 barrel in London. A rally late in the year sent crude oil to its highest price since June 2015.
Natural gas futures climbed 4 cents, or 1.5 percent, to $3 per 1,000 cubic feet. Natural gas is mostly used to heat homes and demand often rises in frigid weather.
CURRENCY: The dollar fell to 112.11 yen from 112.64 yen. The euro rose to $1.2048 from $1.2012. The dollar declined steadily in 2017 and the ICE U.S. dollar index slumped 10 percent, its biggest decline since 2003. The improved global economy was responsible for much of that decline, however, and the weaker dollar makes U.S. exports less expensive in other markets.
OVERSEAS: Germany's DAX fell 0.2 percent and France's CAC 40 shed 0.4 percent. The British FTSE 100 retreated 0.6 percent.
Asian markets mostly did better. A survey by Chinese business magazine Caixin found manufacturing grew in December at the fastest rate in four months. In India, a survey showed manufacturing hit a five-year high in December. The Hang Seng in Hong Kong gained 2 percent to and Seoul's Kospi gained 0.5 percent. Markets in Japan were closed for a holiday.
-By Marley Jay, AP Markets Writer