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US stocks end at fresh records on strong data, higher oil prices
NEW YORK, Jan 4, 2018 (BSS/AFP) – Wall Street stocks surged to fresh records
Wednesday, boosted by strong US manufacturing data, higher oil prices and
continued strength in technology shares.
All three major US indices closed at new all-time highs, with the Dow Jones
Industrial up 0.4 percent to 24,922.68.
The broad-based S&P 500 rose 0.6 percent to end at 2,713.06, while the tech-
rich Nasdaq Composite Index gained 0.8 percent to 7,065.53, its second day
closing above 7,000.
Investors remain broadly bullish on the US economy amid improving data and
expectations that the just-enacted tax cut will boost corporate earnings.
The manufacturing sector continued to expand at a strong pace in December,
lifting the Institute for Supply Management’s purchasing managers index to
its second highest level in seven years.
“The economy is in really good shape. It is hard to find a sector that is
weak,” economist Joel Naroff said, adding that fourth-quarter US growth could
come in at three percent or higher.
Petroleum-linked shares rose sharply as oil prices rallied on the upheaval
in Iran and persistently cold weather in the US. Dow member ExxonMobil gained
2.0 percent, Apache rose 2.3 percent and Schlumberger added 2.6 percent.
Technology shares were another strong group, with Amazon, Facebook and
Google-parent Alphabet all up more than one percent.
IBM surged 2.8 percent following an upgrade from RBC Capital Markets.
Dow member Intel dropped 3.4 percent after British website the Register said
Intel chips were vulnerable to a security bug. Intel disputed aspects of the
report and said the issue was not unique to Intel products.
American Express gained 0.6 percent despite disclosing that it will take a
one-time of charge of $2.4 billion in the fourth quarter connected to the US
tax reform.
South Carolina utility company SCANA surged 22.6 percent after striking a
deal worth $14.6 billion to be acquired by Dominion Energy. The transaction
includes a $1.7 billion write-off for SCANA’s shuttered South Carolina
nuclear projects. Dominion shares dropped 3.9 percent.
BSS/AFP/SR/1540 HRS