U.S. Stocks Finish Trading Higher -- WSJ
22 Décembre 2017 - 9:02AM
Dow Jones News
By Michael Wursthorn and Riva Gold
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 22, 2017).
-- U.S. stocks move higher
-- Shares of banks and energy firms lead S&P 500
-- Utility stocks fall
Shares of banks and energy firms rose Thursday to help major
indexes snap a two-day streak of declines.
Recent pledges from several companies -- including banks and
telecommunications firms -- to share the benefits of Republicans'
tax cuts with their employees helped investors overcome concerns
around how much of the tax bill had already been priced into the
market this year, money managers said. The S&P 500 is up 20% in
2017, with gains partly driven by the expectations of lower
taxes.
"Corporate America is feeling flush," said Charlie Smith, chief
investment officer of Fort Pitt Capital Group. Instead of using the
tax cuts to pay more dividends or repurchase shares, some companies
are promising to pay their employees more or invest in big
projects, he added. "This could mark a sea change in corporate
behavior versus what we've seen the last 10 years."
Energy shares also rose as U.S. oil prices settled at their
second-highest level of the year. The gains helped offset declines
among shares of technology firms late in the session, which caused
indexes to pull back from their intraday highs, and utilities.
The Dow Jones Industrial Average climbed 55.64 points, or 0.2%,
to 24782.29, while the S&P 500 rose 5.32 points, or 0.2%, to
2684.57. The Nasdaq Composite added 4.40 points, or less than 0.1%,
to 6965.36.
Wells Fargo & Co. and Fifth Third Bancorp said Wednesday
they would raise their minimum wage to $15 an hour, while AT&T
and Comcast promised to pay a $1,000 bonus to most of their U.S.
workers.
Wells Fargo's stock added $1.47, or 2.4%, to $61.61, while Fifth
Third rose 42 cents, or 1.4%, to 30.93. AT&T gained 33 cents,
or 0.9%, to 38.88, and Comcast shares rose 1.43, or 3.6%, to
40.81.
Banks were also getting a boost from a multiday surge in U.S.
government bond yields. The yield on the 10-year U.S. Treasury note
edged down to 2.483% from 2.497% on Wednesday, when it hit its
highest level since March. Yields rise as prices fall.
Gains among Wells Fargo and other banks pushed the KBW Nasdaq
Bank index of large U.S. lenders 1.2% higher.
Meanwhile, energy stocks in the S&P 500 rose 2.1%, as crude
oil gained 0.5%, to $58.36 a barrel.
Chevron added 3.93, or 3.3%, to 124.82, contributing roughly 27
points to the Dow's gain. Exxon Mobil added 98 cents, or 1.2%, to
83.85.
With the tax bill nearly complete, some analysts and investors
say they are concerned that any resulting lift to corporate profits
and the economy could spur the Federal Reserve to quicken the pace
of interest-rate increases.
U.S. output grew at a 3.2% annual rate in the third quarter, the
economy's best quarter since the first three months of 2015, the
Commerce Department said Thursday.
"It could give corporates more clarity and a one-year jump in
earnings growth, but any pickup may be offset by tighter [monetary]
policy," said Zahra Ward-Murphy, equity strategist at Absolute
Strategy Research.
Investors were also following lawmakers' year-end talks over a
bill to keep the government funded, analysts said.
Elsewhere, the Stoxx Europe 600 rose 0.6% after two consecutive
sessions of losses. In Asia, South Korea's Kospi fell 1.7% after
shares of Samsung Electronics slid. The Shanghai Composite Index
rose 0.4%, while the Hang Seng gained 0.5%.
Corrections & Amplifications The Dow Jones Industrial
Average closed at 24782. An earlier version of this article
incorrectly stated the index closed at 23782.
Write to Michael Wursthorn at Michael.Wursthorn@wsj.com and Riva
Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
December 22, 2017 02:47 ET (07:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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