Wall Street run continues; Dow transports hit record

Record ID: 76167

  • Title: Wall Street run continues; Dow transports hit record
  • Date: 7th December 2016
  • Summary: NEW YORK, NEW YORK, UNITED STATES (DECEMBER 7, 2016) (REUTERS) (SOUNDBITE) (English) GOLDBEAN CEO JANE BARRATT, SAYING: "It's really a whole new world in terms of headline risk. It is another whole risk that both investors and companies need to look out for in terms of it can have a real impact in the short term. Obviously there is not enough data to say long term whether stocks will bounce back from mentions like this but it is a whole new world and it really does change the game of the media."
  • Embargoed: 22nd December 2016 21:20
  • Keywords: Jane Barratt Goldbean stocks markets trump healthcare trading NYSE record rally
  • Location: NEW YORK, NEW YORK, UNITED STATES
  • City: NEW YORK, NEW YORK, UNITED STATES
  • Country: USA
  • Reuters ID: LVA0025BVYNWT
  • Aspect Ratio: 16:9
  • Story Text:Wall Street surged on Wednesday (December 7), with the Dow industrials and S&P 500 hitting fresh records, as equities continued their march upward after the election of Donald Trump as U.S. president, and a new high for transportation stocks added to the bullish tone.
    All three major indexes finished more than 1 percent higher.
    The gains came even as Trump's comments on prescription drug pricing wounded the healthcare sector.
    U.S. equities have scaled new highs since the election, with investors encouraged by Trump's plans for economic stimulus and to reduce corporate taxes and regulations.
    The Dow Jones industrial average rose 297.84 points, or 1.55 percent, to 19,549.62, the S&P 500 gained 29.12 points, or 1.32 percent, to 2,241.35 and the Nasdaq Composite added 60.76 points, or 1.14 percent, to 5,393.76.
    The S&P 500 set a new closing high for the first time since Nov. 25.
    The Dow Jones Transport Average rose 2.5 percent and set new all-time intraday and closing highs, surpassing its prior peaks from late 2014.
    A finish above the closing record for the transportation average could indicate further gains as it triggers a bullish sign for some investors who look for parallel performance for both the Dow industrial and transportation averages.
    Gains were broad-based with 10 of 11 major sectors in positive territory.
    Telecommunications and real estate, which are high dividend payers, posted the strongest sector gains.
    Traders also pointed to covering of short positions ahead of Thursday's meeting of the European Central Bank as a catalyst driving the market higher.
    Trump's victory has been seen as a boon, particularly for financial and industrial stocks that have surged since the election.
    But biotechnology and pharmaceutical stocks tumbled on Wednesday after Trump promised in a Time magazine article that "I'm going to bring down drug prices."
    The S&P healthcare fell 0.8 percent, the only group in negative territory. The Nasdaq Biotechnology index slumped 2.9 percent, recovering from steeper losses initially after Trump's comments were publicized.
    Trump's effect was seen on Tuesday, as well, with Boeing's stock falling briefly after his tweet that an order for a revamped Air Force One plane should be canceled over high costs.
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