Boosted by Apple, Wall
Street parties like it's 19,999
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[January 07, 2017]
By Noel Randewich
(Reuters) - The Dow came within one point
of 20,000 for the first time on Friday and the Nasdaq and S&P 500
reached record highs, boosted by Apple, extending a two-month rally
fueled by optimism about U.S. President-elect Donald Trump.
Apple <AAPL.O> climbed 1.1 percent after Canada's Competition Bureau did
not find sufficient evidence the iPhone maker had engaged in
anti-competitive conduct, closing a two-year investigation into the
Wall Street has been on a tear since Trump won the U.S. election in
November, with the Dow up 9 percent as investors bet he will stimulate
the economy with lower taxes and infrastructure spending. While Friday's
gains suggested the rally was not yet over, some investors have grown
"The market's advance is understandable because of the economic stimulus
optimism associated with a new Trump presidency," said CFRA chief
investment strategist Sam Stovall. "But parabolic market advances
traditionally experience digestion of these gains, and I don't think
this time will be any different."
The record trading session followed a U.S. Labor Department report that
showed the economy added fewer-than-expected jobs last month but wages
increased, suggesting resilience in the labor market.
Stocks did not react significantly to a report that five people were
dead in a shooting at Florida's Fort Lauderdale airport.
The Dow Jones Industrial Average <.DJI> rose 64.51 points, or 0.32
percent, to end at 19,963.8 points. The index rose as high as 19,999.63
but lost ground. Goldman Sachs <GS.N> rose 1.48 percent, helping the Dow
more than any other stock.
The S&P 500 <.SPX> gained 7.98 points, or 0.35 percent, to 2,276.98, its
highest close ever. The Nasdaq Composite <.IXIC> added 33.12 points, or
0.6 percent, to 5,521.06, also a record.
Nine of the 11 major S&P 500 sectors rose, led by the technology
sector's <.SPLRCT> 0.96 percent gain.
For the week, the Dow rose 1 percent while the S&P gained 1.7 percent
and the Nasdaq jumped 2.6 percent.
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Trader Peter Tuchman applauds as he works on the floor of the New York Stock
Exchange (NYSE) and reacts to the Dow Jones Industrial Average almost hitting
20,000 in New York, U.S., January 6, 2017. REUTERS/Lucas Jackson
INVESTORS EYE EARNINGS
The strength of fourth-quarter earnings reports from U.S. companies over the
next few weeks will be closely watched by investors eyeing high stock
Following its recent gains, the S&P 500 is trading at about 17 times expected
earnings, pricey compared to its 10-year average of 14, according to Thomson
Analysts on average expect fourth-quarter earnings to rise 6.1 percent compared
to a year before, when slumping oil prices crippled energy companies, according
to Thomson Reuters I/B/E/S.
During the session, Amgen <AMGN.O> rose 2.48 percent after a U.S. district
judge blocked Sanofi <SASY.PA> and Regeneron <REGN.O> from selling their
cholesterol drug, which Amgen said infringed its patents. Regeneron fell 5.84
percent and was the biggest percentage loser on the S&P 500.
Declining issues outnumbered advancing ones on the NYSE by a 1.11-to-1 ratio;
on Nasdaq, a 1.21-to-1 ratio favored decliners.
The S&P 500 posted 24 new 52-week highs and no new lows; the Nasdaq Composite
recorded 76 new highs and 15 new lows.
About 6.4 billion shares changed hands in U.S. exchanges, a bit under the 6.7
billion daily average over the last 20 sessions.
(Addtional reporting by Yashaswini Swamynathan in Bengaluru; Editing by Nick
Zieminski and Meredith Mazzilli)
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