US stocks jumped with retailers and energy firms among the winners as positive sentiment about President Donald Trump’s economic agenda again lifted the market to fresh records at the close. / AFP PHOTO /
NEW YORK, United States (AFP) — US stocks jumped Tuesday with retailers and energy firms among the winners as positive sentiment about President Donald Trump’s economic agenda again lifted the market to fresh records at the close.
All three major equity indices finished at all-time highs for the seventh time in eight sessions, with the Dow Jones Industrial Average up 0.6 percent at 20,743.00.
The broad-based S&P 500 also gained 0.6 percent to end the day at 2,365.38, while the tech-rich Nasdaq Composite Index advanced 0.5 percent to 5,865.95.
Jack Ablin, chief investment officer at BMO Private Bank, said the latest records reflected “continued panic buying” as money managers fear missing out on new peaks.
The surge has been prompted by expectations Trump will imminently unveil details of a major tax plan, perhaps at his February 28 State of the Union address.
Other factors behind Tuesday’s gains included higher oil prices and better-than-expected earnings from retailers. European markets also got a lift from a positive eurozone economic report.
Wal-Mart jumped 3.0 percent after reporting a 1.8 percent gain in fourth-quarter comparable sales at US stores. The retail giant also saw strong increases in e-commerce, although profits were pinched by increased spending.
Home Depot gained 1.4 percent after reporting an 18.6 percent jump in fourth-quarter earnings to $1.7 billion.
Other retailers to gain included Gap, up 2.3 percent, Best Buy, up 1.7 percent and Target, up 0.6 percent.
Petroleum-linked shares advanced on higher oil prices, with Chevron climbing 1.3 percent, Devon Energy 2.1 percent and Transocean 2.4 percent.
Yahoo rose 0.9 percent and Verizon 0.5 percent after they announced a $350 million reduction in the price of Yahoo’s core Internet business in the sale to Verizon following a pair of major data breaches of Yahoo.
Unilever lost 7.5 percent and Kraft Heinz fell 1.8 percent in the first session since Kraft Heinz withdrew its bid for the Unilever over the weekend.
Another large food company, Mondelez International, jumped 5.8 percent as it launched a new “Vea” brand of crisps and bars with no artificial ingredients or GMOs.
Popeyes Louisiana Kitchen shot up 19.1 percent after agreeing to be acquired by Restaurant Brands International, the parent company of Burger King and Tim Horton’s, for $1.8 billion. Restaurant Brands gained 7.0 percent.
© Agence France-Presse