Published: Sat, January 13, 2018
Finance | By Loren Pratt

S&P, Dow open higher as bank shares rise

S&P, Dow open higher as bank shares rise

Stocks roared to another day of record highs, climbing steadily through the day and finishing near session highs. These names stand to benefit the most if economic growth ratches up.

The S&P 500 and Nasdaq both registered their eight record closing highs out of the first nine trading days of 2018, while the Dow boasted its sixth closing high of the year.

The S&P consumer discretionary index jumped 0.55 percent after data showed households bought a range of goods and figures for the prior month were revised higher, suggesting the economy exited 2017 with strong momentum.

Brent crude rose above $70 a barrel and US crude rose 1.57 percent to $64.58 per barrel, its highest since December 2014, boosted by a surprise drop in USA production and lower crude inventories.


The Dow Jones Industrial Average rose 80.35 points, or 0.31 percent, to 25,655.08. The Nasdaq Composite Index's more than 5% advance so far this month, marks the best start to a year since 2004.

Earnings for S&P 500 companies are expected to increase by 11.8 percent on an average, with the biggest contribution from the energy sector, according to Thomson Reuters I/B/E/S.

While Wells Fargo (WFC.N) earnings beat expectations, its shares slipped 0.7 percent after it set aside $3.25 billion in the fourth quarter to cover legal expenses related to probes into its mortgage and sales practices. But analysts said the gains also reflected the market's underlying bullishness after a sweeping USA tax cut was enacted in December.

Oil-linked shares with big gains included Dow member Chevron, up 3.1 percent, Apache, up 4.7 percent and Schlumberger, up 1.9 percent.

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