Wall St gains as Apple, tech rebound, oil lifts energy shares

A trader works inside a post on the floor of the New York Stock Exchange  August 31, 2018. — Reuters pic
A trader works inside a post on the floor of the New York Stock Exchange August 31, 2018. — Reuters pic

NEW YORK, Sept 12 — US stocks rose yesterday as Apple led a jump in technology shares and a gain of more than 2 per cent in oil prices drove up energy shares.

Apple rose 2.5 per cent, boosting the three major indexes, a day ahead of its expected unveiling of new iPhone models.

The S&P technology sector gained 0.8 per cent, its biggest percentage jump in two weeks, also boosted by Microsoft, up 1.7 per cent, and Facebook, up 1.1 per cent.

“That's been the main fuel for the market,” said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm based in Toledo, Ohio. “Maybe tech has taken the punch and is recovering, and investors are getting more confident that the leader is back.”

The technology sector is up close to 18 per cent for the year so far, leading sector gains in the S&P 500 along with consumer discretionary, also up roughly 18 per cent since Dec 31.

The energy index, up 1 per cent, helped to lift the S&P 500, with shares of Exxon Mobil up 1.4 per cent and Chevron up 0.5 per cent. Oil prices rose after US sanctions squeezed Iranian crude exports and tightened global supply.

The Dow Jones Industrial Average rose 113.99 points, or 0.44 per cent, to 25,971.06, the S&P 500 gained 10.76 points, or 0.37 per cent, to 2,887.89 and the Nasdaq Composite added 48.31 points, or 0.61 per cent, to 7,972.47.

Also gaining were shares of companies that could see a boost in sales in the aftermath of Hurricane Florence, which was upgraded to Category 4 and was expected to make landfall in the Carolinas later this week.

Home improvement retailer Home Depot was up 1.5 per cent and Lowe's Companies was up 1.6 percent, while shares of construction material companies also rose.

The gains came despite lingering trade tensions. China told the World Trade Organisation it wanted to impose sanctions on the United States for its non-compliance with a ruling in a dispute over US dumping duties.

President Donald Trump had on Friday threatened to slap tariffs on nearly all Chinese imports.

Western Digital slid 3.6 per cent after RBC echoed other brokerages in warning that falling NAND chip prices would hit the company.

Activision Blizzard jumped 7.1 per cent and Take-Two Interactive Software gained 3.7 per cent after brokerage Stifel forecast a strong reception for their videogames in the holiday period.

Advancing issues outnumbered declining ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.15-to-1 ratio favoured decliners.

The S&P 500 posted 37 new 52-week highs and 14 new lows; the Nasdaq Composite recorded 106 new highs and 98 new lows.

About 6.3 billion shares changed hands on US exchanges. That compares with the 6.1 billion daily average for the past 20 trading days, according to Thomson Reuters data. — Reuters

Related Articles