US top stocks powered ahead on Tuesday, with the Dow Jones Industrial marking its fourth successive record high close, while the S&P 500 made up for a feeble performance since Thursday after Donald Trump’s pro-business plans were mulled over by investors.
The S&P 500 market bellwether closed up 0.8% at 2180, just ten points off its 2,190.15 record high set in mid-August, while the Dow rose 0.3% higher to 18,923.06 – also its seventh straight day of gains.
The tech-heavy Nasdaq Composite gained 1.1%. The rise was led by a rebound in large technology stocks such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), offsetting declines in the financial sector. Apple closed up 1.3% at $107.11 and rival Microsoft up 2% at $58.87.
It also came as conciliatory overtures began to emerge from Silicon Valley directed towards US President-elect Trump. Read more.
The S&P Midcap 400 closed up 0.5% at 1595 and led by Zebra Technologies (NASDAQ:ZBRA), up 12.95% at $75.46.
But right behind it were a succession of oil stocks after optimism grew for a supply-cutting deal by OPEC at the end of the month. The US oil benchmark WTI was up a hefty and rarely seen 5.26% to $45.60.
The S&P Smallcap 600 closed up 0.3%, while the Russell 2000, a wider small-cap ticker, was also up 0.3% at 1302.
Early trading
US top line stocks gained on Tuesday, reversing days of losses since Donald Trump was confirmed as next US President, while smaller caps which posted two days of record gains dropped on profit-taking.
Meanwhile, shipping stocks were jumping higher after a Seoul court award which could affect – favourably – Asia-to-US shipping transport rates, and oil stocks crowded among the S&P 500 top gainers after oil prices raced 4% higher on hopes that OPEC will – despite all the recent doubts – reach a supply-cutting deal later this month.
The market bellwether S&P 500 was up 0.2% at 2168 and led by Advance Auto Parts Inc (NYSE:AAP), up 14% to $162.86 after reporting adjusted earnings of $1.73 per share in the third quarter of fiscal 2016 that surpassed the Zacks Consensus Estimate of $1.72.
But close by were risers like Chesapeake Energy Corp (NYSE:CHK) up 9% to $5.97, Southwestern Energy Company (NYSE:SWN) up 5.3% to $11.32, and Murphy Oil Corp (NYSE:MUR), up 7.5% to 30.45.
The West Texas Intermediate, the US oil benchmark, was up from multi-month lows by 4% to $45.05.
Meanwhile, the shipping sector was moving at fast knots after Korea Line Corp (KRX:005880) was awarded the assets of Hanjin Shipping Co. out of a bankruptcy court in Seoul. Korea Line stocks ended down 13.7% in Seoul earlier.
But the decision could impact Asia-to-US shipping rates, and that was enough to give other shipping stocks a chance to bale out water.
DryShips (NASDAQ:DRYS) was up 25.4% at $53.76, Euroseas (NASDAQ:ESEA) jumped 85% higher to $4.04 and TOP Ships (NASDAQ:TOPS) advanced by 48% to $5.03.
Other gainers included Diana Shipping Inc. (NYSE:DSX) up 6.4% to $3.80, Seaenergy Maritime Holdings (NASDAQ:SHIP), up 63.8% to $4.39, and Star Bulk Carriers (NASDAQ:SBLK), up a more modest 3.7% to $5.33.
Although paring losses, the S&P Midcap 400 opened lower and was down 0.02% at 1587, led by Sally Beauty Holdings (NYSE:SBH) down 17% to $24.18 following its full-year earnings.
On the flipside, oil stocks dominated gainers, with Patterson-UTI Energy (NYSE:PTEN) up 6.1% to $23.88, Denbury Resources (NYSE:DNR) up 5.1% to $3.07, and Sm Energy (NYSE:SM) up 6.3% to $34.40.
The S&P Smallcap 600 was down 0.3% to 790, led by First Nbc Bank (NASDAQ:FNBC) down 9.9% to $7.75.
The wider small-cap Russell 2000 index was down 0.3% to 1295.
The S&P 400, S&P 600 and Russell 2000 all posted record high closes on Monday as the stock rotation continued following speculation over what pro-business policies Trump will enact.
In data, US retail sales increased 0.8% month-over-month in October, following an upwardly revised 1% for September. Figures beat market expectations of a 0.6% gain, mainly boosted by sales of motor vehicle, and offered further justification for next month’s Fed rate hike which is almost universally priced in above 92%.
Pre-Open
After an indecisive showing yesterday, blue-chips are set to open firmer this morning.
Mind you, they opened firmer yesterday as well, and look how that turned out.
US retail sales data, due later today, could knock the market out of whack, but for now, the Dow Jones average is looking at a 17 point rise at the outset while spread betting quotes point to the S&P opening a couple of points firmer.
On the subject of retail sales, retailers TJX Companies Inc (NYSE:TJX), Dick’s Sporting Goods Inc (NYSE:DKS) and Home Depot Inc are all likely to be in focus after updating the market today.
Home improvements specialist Home Depot (NYSE:HD) cheered the market with its third quarter results. The retailer has upped its earnings guidance for the full year. Like-for-like sales in the third quarter rose 5.5% from a year earlier.
Speculation is rising that London-listed British American Tobacco plc may have to hike its offer for Reynolds American Inc (NYSE:RAI) in order to gain a recommendation from the board of RAI.
The news agency Bloomberg reports that the Reynolds board has rejected BATs’ US$47bn offer. Since the UK-based cigarettes maker announced its cash-plus-shares offer, its shares have declined in value from 4,660p (UK shares are quoted in pence) to 4,295p.
BATS already holds 42.2% of Reynolds, however, so it is in a fairly strong bargaining position.