US Stocks on Pace for Record Day 06/20 09:20
An early surge on the stock market Thursday put the S&P 500 index on track
for another record high and erased the market's losses from a brutal sell-off
NEW YORK (AP) -- An early surge on the stock market Thursday put the S&P 500
index on track for another record high and erased the market's losses from a
brutal sell-off in May.
The S&P 500 rose 1% as of 10 a.m. Eastern time and was slightly above the
record close it reached April 30. The index has now wiped out its losses from
May, when growing economic jitters prompted a 6.6% dive.
Technology stocks were the biggest gainers in a sign that investors are in a
bullish mood and hungry for riskier holdings. Oracle rose 6.5% after it
reported solid financial results. Microsoft gained 1.1%. Health care and
industrial stocks also rose.
Every major sector gained ground and an overwhelming majority of companies
trading on the New York Stock Exchange moved higher. Safe-play stocks like
utilities lagged the market.
The Dow Jones Industrial Average rose 0.9%, or 247 points, to 26,750. Big
gains for Boeing, UnitedHealth Group, and Visa helped drive the 30-stock index
higher. The technology-heavy Nasdaq rose 1%.
The market has been moving higher all week as investors became more hopeful
that the U.S. and China could eventually resolve their damaging trade war and
that the Federal Reserve stands ready to stabilize economic growth. The leaders
of the U.S. and China are meeting next on trade.
The Federal Reserve on Wednesday reaffirmed its position that it is prepared
to cut interest rates if trade conflicts or other factors threaten economic
growth. It left its benchmark interest rate unchanged but investors are betting
on at least one interest rate cut this year.
Oil prices surged 4.4% after tensions between the U.S. and Iran tightened
and raised fears that oil shipments through the Strait of Hormuz could be
compromised. Iran's Revolutionary Guard said it shot down a U.S. drone on
Thursday over Iranian airspace. The drone shooting follows last week's attack
on two oil tankers near the Gulf of Oman.
Cruise line operators were among the few losers in the early going after
Carnival slashed its profit forecast for the year. It cited technical issues
with its Vista ship. It also cited a ban on U.S. cruises to Cuban ports and an
economic slowdown in Europe, which both have broader implications for the
sector. Carnival sank 8.7%, Royal Caribbean fell 1.9% and Norwegian fell 1.7%.