Wall St. propped up by tech stocks, financials rise ahead of Fed

By Amy Caren Daniel (Reuters) - U.S. stocks rebounded on Tuesday after losing about 2 percent in each of the past two days, helped by gains in the technology sector, and a rebound in some bellwether stocks such as Boeing and J&J. The focus, though, is on the Federal Reserve, which kicks off its two-day monetary policy meeting amid a host of calls, including from President Donald Trump, to pause its tightening cycle or risk harming the U.S., or the global economy

Reuters December 19, 2018 01:05:20 IST
Wall St. propped up by tech stocks, financials rise ahead of Fed

Wall St propped up by tech stocks financials rise ahead of Fed

By Amy Caren Daniel

(Reuters) - U.S. stocks rebounded on Tuesday after losing about 2 percent in each of the past two days, helped by gains in the technology sector, and a rebound in some bellwether stocks such as Boeing and J&J.

The focus, though, is on the Federal Reserve, which kicks off its two-day monetary policy meeting amid a host of calls, including from President Donald Trump, to pause its tightening cycle or risk harming the U.S., or the global economy.

With a widely expected fourth rate hike for the year on Wednesday, financials <.SPSY> – the worst performing S&P sector this month – rose 0.50 percent.

"The Fed meeting tomorrow is very significant and the last hurdle for the year for many investors," said David Page, senior economist at AXA IM in London.

"I think we're seeing a sort of pause and stabilization as markets wait to see what is going to happen going forward."

The S&P 500 is about 12 percent below its record high, trading in what is called correction territory, and ended Monday at a 14-month low. The benchmark index has struggled to hold onto gains in a particularly volatile December in the backdrop of worries about global growth, rates and the China-U.S. trade war.

Nine of the 11 major S&P sectors were higher. The biggest lift to the market came from the recently beaten-down technology index <.SPLRCT>, which gained 1.47 percent.

A dividend hike and a higher share repurchase program helped Boeing Co snap a three-day losing streak to rise 4 percent. The stock was the biggest boost to Dow Industrials.

Other marquee stocks moving higher included Apple Inc , Amazon.com Inc <.AMZN.O>, and Facebook Inc , which rose between 2 percent and 4 percent. They were the biggest boosts to the S&P and the Nasdaq.

At 12:43 p.m. ET the Dow Jones Industrial Average <.DJI> was up 281.56 points, or 1.19 percent, at 23,874.54, the S&P 500 <.SPX> was up 21.51 points, or 0.84 percent, at 2,567.45 and the Nasdaq Composite <.IXIC> was up 79.91 points, or 1.18 percent, at 6,833.65.

Energy <.SPNY>, the second-worst performing sector this month, tumbled another 0.87 percent as oil prices sank after reports of swelling inventories. [O/R]

Stocks making a comeback included Goldman Sachs Group Inc , which rose 2.4 percent to snap a 9-day losing streak related to the 1MDB scandal.

Johnson & Johnson rose 2.4 percent, after a near 13 percent drop over two days on a Reuters report that J&J knew for decades that its Baby Powder contained asbestos.

Advancing issues outnumbered decliners for a 1.50-to-1 ratio on the NYSE and a 1.25-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs and 42 new lows, while the Nasdaq recorded 6 new highs and 333 new lows.

(Reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak Dasgupta)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Oil rises 2% as OPEC complies with production cuts
Business

Oil rises 2% as OPEC complies with production cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000
Business

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000

By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen
World

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen

By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son