Financials fuel S&P 500 and Dow Jones at record highs; Ford shines


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Traders work in the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York, United States on December 28, 2021. REUTERS / Andrew Kelly

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  • Financials and energy lead S&P 500 sector gains
  • Ford increases optimistic forecast for electric pickup production
  • Rising indices: Dow 0.60%, S&P 0.39%, Nasdaq 0.02%

Jan. 4 (Reuters) – The Dow Jones and S&P 500 hit record highs on Tuesday as concerns over the Omicron variant of the coronavirus faded and financial stocks rose, while Ford jumped on optimistic forecasts for the production of electric vans.

Stock markets around the world rebounded for the second consecutive trading day in 2022, with the World Health Organization saying more and more evidence is emerging that the variant of the coronavirus affects the upper respiratory tract, causing milder symptoms. than the previous variants. Read more

Nine of S&P’s top 11 sectors rose early in the session. Stocks and cyclicals such as energy (.SPNY) and financials (.SPSY) led the pack, up about 2% each. The healthcare sector (.SPXHC) underperformed.

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Travel stocks rose, with the S&P 1500 Airlines Index (.SPCOMAIR) rising 1.9% and cruise lines Norwegian Cruise Line Holdings (NCLH.N), Royal Caribbean (RCL.N) and Carnival Corp (CCL .N) adding between 0.9% and 2.1%.

Large tech stocks that led the gains in the previous session edged up. Apple Inc (AAPL.O), Tesla Inc (TSLA.O), Meta Platforms Inc (FB.O) and Alphabet Inc (GOOGL.O) rose 0.1% to 1.2%.

The banking sector of the S&P 500 (.SPXBK) added 2.7%, while the broader value index (.IVX) rose 0.7% to a record high.

“I think it’s also kind of a posture and positioning of some for the start of the new year. People see the start of the new year as a way to reallocate assets in their portfolio to move money. “said Robert Pavlik, senior portfolio. director at Dakota Wealth Management.

Pavlik said value trading could lead the markets in the first half of this year due to expectations of higher interest rates by the Federal Reserve.

The U.S. central bank announced in December that it would end its bond purchases during the pandemic in 2022, signaling at least three rate hikes for the year. The minutes of the meeting are expected to be released on Wednesday.

Ford Motor Co (FN) added 6.6% after the automaker said it would nearly double the annual production capacity of its burning F-150 Lightning electric pickup to 150,000 vehicles. Read more

General Electric Co rose 2.7% after Credit Suisse upped the conglomerate’s share to “outperform” relative to “neutral.”

Foot Locker Inc slipped 3.4% after JP Morgan lowered the sports and footwear retailer’s share to “underweight” from “neutral.”

At 9:49 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 218.76 points, or 0.60%, to 36,803.82, the S&P 500 (.SPX) was up 18.80 points, or 0.39%, to 4,815.36, and the Nasdaq Composite (.IXIC) was up 2.60 points, or 0.02%, to 15,835.40.

Data showed that manufacturing in the United States slowed in December amid some cooling in demand for goods, but supply constraints are starting to ease and a measure of the prices paid for inputs by producers. factories fell the most since early 2020, when the pandemic disrupted economic activity. Read more

Rising issues outnumbered declines by a 1.96-to-1 ratio on the NYSE and by a 1.25-to-1 ratio on the Nasdaq.

The S&P Index recorded 31 new 52-week highs and no new lows, while the Nasdaq recorded 49 new highs and nine new lows.

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Reporting by Shreyashi Sanyal and Devik Jain in Bangalore; Editing by Maju Samuel

Our Standards: Thomson Reuters Trust Principles.

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