Tags: stocks | market | Dow | oil

Energy, Healthcare Companies Lead Advance in Stocks as Dow Hits Record

Tuesday, 02 December 2014 04:59 PM

Energy and healthcare companies led major stock indexes higher on Tuesday with the Dow Jones Industrial Average closing at a record even as crude oil resumed its slide. General Motors rose after reporting stronger sales, and Biogen, a biotech company, soared following news that its drug for Alzheimer's disease showed promise.

Reports that fewer people turned out to shop over the Thanksgiving weekend helped knock the market down on Monday. But other evidence suggests that people wanted to avoid the crowds at Black Friday sales. IBM Digital Analytics, for instance, said that sales on Cyber Monday jumped 8 percent.

"While Cyber Monday sales growth was positive, the gain wasn't as big as last year's 20 percent increase from 2012," Rob Williams, deputy editor of MoneyNews.com, said on "The Steve Malzberg Show" on Newsmax.TV. "Still, the number is headed in the right direction as falling gasoline prices give consumers more spending power."

Story continues below video of Newsmax.TV's daily market wrap-up.



Note:
Watch Newsmax TV now on DIRECTV Ch. 349 and DISH Ch. 223
Get Newsmax TV on your cable system
Click Here Now

The Standard & Poor's 500 index rose 13.11 points, or 0.6 percent, to 2,066.55.

 

The Dow Jones industrial average gained 102.75 points, or 0.6 percent, to 17,879.55, while the Nasdaq composite rose 28.46 points, or 0.6 percent, to 4,755.81. Oil and gas companies led nine of the 10 industries in the S&P 500 higher.

The one economic report out Tuesday gave investors some encouragement. Newly built houses and schools lifted U.S. construction spending in October to the highest level since May, the Commerce Department said. Overall construction spending climbed 1.1 percent, higher than economists' forecasts.

General Motors posted solid sales gains in the U.S. last month, helped by discounts and falling gas prices. GM's sales climbed 6 percent to nearly 226,000 in November. The carmaker's stock gained 32 cents, or 1 percent, to $33.26.

Among other companies making big moves, Avanir Pharmaceuticals soared on news that Otsuka Pharmaceuticals of Japan plans to buy the company for $3.5 billion. Under the terms of the deal, Otsuka would pay Avanir investors $17 per share in cash. Avanir's stock jumped $1.92, or 13 percent, to $16.92.

Crude oil prices resumed their long slide, falling $2.12 to settle at $66.88 a barrel in New York trading. The slump has rippled throughout financial markets in recent weeks, putting stress on oil-exporting countries such as Russia. On Tuesday, Russia's government forecast that the country's economy will shrink next year. That helped send Russia's currency down 5 percent against the dollar and drive its RTS stock index down 3 percent.

"The economic conditions Russia is facing right now are aggressively against its economy," said Jameel Ahmad, Chief Market Analyst for FXTM.

Elsewhere in Europe, Germany's DAX slipped 0.3 percent, while France's CAC 40 inched up 0.3 percent. In the U.K., the FTSE 100 index of leading British shares gained 1.3 percent.

In Asia, Japan's Nikkei rose 0.4 percent. In China, the Shanghai Composite Index climbed 3 percent, and Hong Kong's Hang Seng added 1.2 percent.

Traders will have a batch of economic news to digest over the rest of the week. On Thursday, the European Central Bank meets to discuss whether the region's flagging economy needs more support. On Friday, the U.S. Labor Department releases its look at employment in November, a report that often sends markets swinging.

In other trading on Tuesday, government bond prices fell, pushing the yield on the 10-year Treasury note up to 2.29 percent.

Prices for precious metals sank. Gold dropped $18.70 to settle at $1,199.40 an ounce, while silver slid 24 cents to $16.46 an ounce. Copper dipped a penny to $2.89 a pound.

In other trading on the New York Mercantile Exchange:

Wholesale gasoline fell 7 cents to close at $1.812 a gallon.

Heating oil fell 6 cents to close at $2.154 a gallon.

Natural gas fell 13 cents to close at $3.874 per 1,000 cubic feet.

© Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

   
1Like our page
2Share
Finance
Energy and healthcare companies led major stock indexes higher on Tuesday with the Dow Jones Industrial Average closing at a record even as crude oil resumed its slide.
stocks, market, Dow, oil
663
2014-59-02
Tuesday, 02 December 2014 04:59 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved