The Nasdaq hit a record intraday high on Monday, while the S&P and the Dow were within a hair's breadth of their all-time highs, helped by a jump in technology shares and as a surge in oil prices boosted energy stocks.
The Nasdaq hit a record intraday high on Monday, while the S&P and the Dow were within a hair’s breadth of their all-time highs, helped by a jump in technology shares and as a surge in oil prices boosted energy stocks. The three major indexes have rallied since the US election as investors bet Donald Trump’s policies would be market friendly. The Dow hit a record intraday high last week. Oil prices jumped 3.45 percent to a near three-week high on hopes that the OPEC would agree to an output cut next week and the dollar index’s first drop in 11 days.
The energy sector dominated the gainers among the 11 major S&P sectors, rising 2.2 percent. Chevron and Exxon rose 1.5 percent each and were the top influences on the index on which only one stock was in the red. The technology index, which had dropped 0.4 percent since the election, was up 0.44 percent. It was boosted by Facebook’s 2.3 percent rise after the company announced a $6 billion share buyback program.
A spate of tech deals also boost sentiment in the sector as well as the broader market. “I think the (post-election rally) is continuing today but the volumes are very low. This is holiday trading and there is no conviction in the move and it’s already fading,” said Phil Davis, chief executive of PSW Investments.
At 11:05 a.m. ET (1605 GMT) the Dow Jones Industrial Average was up 35.38 points, or 0.19 percent, at 18,903.31. It hit a record intraday high of 18,934.05 on Nov. 14. The S&P 500 was up 9.04 points, or 0.41 percent, at 2,190.94. That was just two points off its record high of 2,193.81 notched in August. The Nasdaq Composite was up 22.50 points, or 0.42 percent, at 5,344.02, easing after a record of 5,362.47.
LifeLock surged more than 15 percent after Symantec said it would buy the identity theft protection company for $2.3 billion. Symantec rose 2.7 percent. Applied Micro Circuits jumped 11 percent after Macom Tech said it would buy its fellow chipmaker for $770 million. Macom was off 5.6 percent.
Tyson Foods’ 15.5 percent slump led the losers on the S&P after the meat processor reported a lower-than-expected profit and said its CEO would step down. Advancing issues outnumbered decliners on the NYSE by 1,989 to 867. On the Nasdaq, 1,384 issues fell and 1,283 advanced. The S&P 500 index showed 32 new 52-week highs and three new lows, while the Nasdaq recorded 174 new highs and five new lows.