- Title: Dow sets record high close; banks, telecoms gain
- Date: 6th December 2016
- Summary: NEW YORK, NEW YORK, UNITED STATES (DECEMBER 6, 2016) (REUTERS) (SOUNDBITE) (English) VESPULA CAPITAL CEO, JEFF TOMASULO, SAYING: "As stocks get ahead of themselves valuations come into play. So you have got to keep that in mind. Especially financials right now. I think we are a little over valued. I think in the overall market we are probably a little over valued. So any pullback of 3 to probably 8 percent I would be looking to get involved."
- Embargoed: 21st December 2016 21:23
- Keywords: Jeff Tomasulo stocks Verizon AT&T bell NYSE Trump rally record Dow bank telecom election trading
- Location: NEW YORK, NEW YORK, UNITED STATES
- City: NEW YORK, NEW YORK, UNITED STATES
- Country: USA
- Reuters ID: LVA0025BQZIX9
- Aspect Ratio: 16:9
- Story Text: Wall Street climbed on Tuesday (December 6) as telecom stalwarts AT&T and Verizon gained and bank shares added to their torrid post-election rally, helping the Dow set another record closing high.
The S&P financial sector rose nearly 1 percent, lifted by a 2.2 percent gain for Wells Fargo. The bank's chief executive told an investor conference it will see a near-term profit hit because of the sharp rise in interest rates, but will benefit in the longer term from rising rates.
Bank of America, Citigroup and Goldman Sachs also ended higher.
Financials have climbed more than 15 percent since the Nov. 8 election and are seen as one of the sectors particularly benefiting as U.S. President-elect Donald Trump seeks to pass economic stimulus and reduce corporate taxes and regulations.
"As stocks get ahead of themselves valuations come into play. So you have got to keep that in mind. Especially financials right now. I think we are a little over valued. I think in the overall market we are probably a little over valued," said Jeff Tomasulo, CEO of Vespula Capital.
"So any pullback of 3 to probably 8 percent I would be looking to get involved."
Meanwhile, the Federal Reserve is widely expected to raise interest rates next week, in another boost for banks.
The Dow Jones industrial average rose 35.54 points, or 0.18 percent, to 19,251.78, the S&P 500 gained 7.52 points, or 0.34 percent, to 2,212.23 and the Nasdaq Composite added 24.11 points, or 0.45 percent, to 5,333.00.
AT&T shares rose 1.9 percent. The company said its new streaming television service DirectTV Now has so far exceeded expectations.
Verizon shares climbed 1.2 percent. The No. 1 U.S. wireless carrier is selling 29 data centers to Equinix for $3.6 billion.
Verizon also helped boost the Dow, which has outperformed other major indexes and notched a series of fresh record highs since the election as investors pile into financials and industrial stocks.
Trump's market influence was seen on Tuesday as Boeing shares fell after he tweeted that the government should cancel an order with the plane maker to develop a revamped Air Force One. Boeing shares recovered initial losses and ended marginally positive.
Trump's announcement that Japanese telecoms and internet firm SoftBank agreed to invest $50 billion in the United States also rippled through markets, with Sprint shares rising 1.5 percent and T-Mobile gaining 1.8 percent.
In other corporate news, Nike fell 2.5 percent after Cowen & Co downgraded the shoe and apparel maker's shares to "market perform."
About 7.1 billion shares changed hands in U.S. exchanges, below the 7.9 billion daily average over the last 20 sessions.
Advancing issues outnumbered declining ones on the NYSE by a 2.45-to-1 ratio; on Nasdaq, a 1.97-to-1 ratio favored advancers.
The S&P 500 posted 41 new 52-week highs and four new lows; the Nasdaq Composite recorded 294 new highs and 21 new lows. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2016. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None
