Bank Stocks Help Dow to Another Record; Tech Stocks Recover


U.S. stocks resumed their climb Monday as investors bought stocks that stand to benefit from economic growth, like banks, as well as technology companies, which have been mostly left out of a post-election rally. The& Dow& Jones industrial set another record high.

Energy companies rose as the price of oil reached its highest level since July 2015. Small-company stocks continued to outpace the rest of the market. Technology companies have fallen since the election as big names like Facebook and Alphabet have lost ground. But that changed Monday.

The& Dow& Jones industrial average rose 45.82 points, or 0.2 percent, to 19,216.24. Earlier it went as high as 19,274. The Standard & Poor’s 500 index climbed 12.76 points, or 0.6 percent, to 2,204.71. The Nasdaq composite added 53.24 points, or 1 percent, to 5,308.89.

Stocks of small and mid-sized companies rose sharply. The Russell 2000 index jumped 23.53 points, or 1.8 percent, to 1,337.79. Thanks to a big rally in November, the Russell is up 18 percent this year, more than twice as much as the S&P 500, which tracks large U.S. companies. Smaller companies, which are more domestically focused than large multinationals, could stand to benefit more than larger ones from a pickup in U.S. growth.

Banks resumed their post-election rally and are trading at their highest levels since early 2008. Goldman Sachs gained $5.19, or 2.3 percent, to $228.55, a nine-year high. While stocks traded lower overall last week, banks are on a four-week winning streak since the election.

Oil prices rose for the fourth day in a row. The price of oil has surged since OPEC countries finalized a deal that will trim oil production starting in January. Benchmark U.S. oil rose 11 cents to $51.79 per barrel in New York. Brent crude, used to price international oils, gained 48 cents to $54.94 a barrel in London.

U.S. government bond prices recovered from a sharp drop earlier in the day and finished just a bit lower. The yield on the benchmark 10-year Treasury note edged up to 2.40 percent from 2.39 percent late Friday.

Italian voters rejected proposed changes to the nation’s constitution on Sunday, causing political and economic uncertainty for Europe’s fourth-largest economy. Premier Matteo Renzi said he would resign. UniCredit, the biggest bank in Italy, lost 3 percent in Milan. Monte dei Paschi di Siena, the country’s third-biggest lender, slumped 4 percent. The bank failed a stress test this year and has been in negotiations with investors to raise money to shore up its financial position.

Italian stocks didn’t move much overall, and the FTSE MIB index slipped 0.2 percent.

Other major European indexes finished higher. Germany’s DAX added 1.6 percent and France’s CAC-40 gained 1 percent. In London the FTSE 100 advanced 0.2 percent. Asian stocks mostly fell. Tokyo’s Nikkei 225 retreated 0.8 percent. The Hang Seng in Hong Kong lost 0.3 percent.

The dollar rose to 113.75 yen from 113.67 yen. The euro rose to $1.0770 from $1.0660.

In other energy trading, wholesale gasoline remained at $1.56 a gallon and heating oil was unchanged at $1.66 a gallon. Natural gas jumped 22 cents, or 6.3 percent, to $3.65 per 1,000 cubic feet.

Gold fell $1.30 to $1,176.50 an ounce. Silver rose 7 cents to $16.90 an ounce. Copper jumped 7 cents, or 2.8 percent, to $2.70 a pound.

To Read The Full Story

Are you already a subscriber?
Click to log in!