money

Wall Street rising: Facebook, Alphabet, Lululemon gain

Traders work on the floor of the New York Stock Exchange December 6, 2017. — Reuters picTraders work on the floor of the New York Stock Exchange December 6, 2017. — Reuters picNEW YORK, Dec 8 — Wall Street rose yesterday, buoyed by popular technology companies including Facebook and Alphabet, while shares of yoga pants seller Lululemon Athletica also worked up a sweat.

Facebook climbed 2.31 per cent, while Google parent-company Alphabet added 1.23 per cent, helping the S&P 500 end higher after the index lost ground for four straight sessions.

“Technology once again is leading the way here,” said Peter Cardillo, chief market economist at First Standard Financial in New York.

The top-performing sector this year, the S&P 500 information technology index had fallen nearly 3 per cent since Nov 28, with some investors cautious about high earnings multiples.

Lululemon jumped 6.43 per cent after the Canadian apparel maker reported a higher-than-expected profit and gave an upbeat holiday season forecast.

General Electric increased about 0.3 per cent after the industrial conglomerate said it was cutting 12,000 jobs at its global power business.

Strong earnings and expectations of corporate tax cuts promised by President Donald Trump have pushed stocks up to record levels this year.

The Senate Republicans on Wednesday agreed to talks with the House of Representatives on the tax bill amid early signs that lawmakers could agree on a final bill ahead of a self-imposed Dec 22 deadline.

Yesterday's stock gains suggested investors were not overly worried about a deadline on Friday night faced by Trump and Congress to pass fresh spending legislation. If they cannot agree on the terms, parts of the federal government could shut down.

“Market participants are looking past the government shutdown,” said Chad Morganlander, portfolio manager at Washington Crossing Advisors in Florham Park, New Jersey. “It's a risk-on mood through the last trading session. That will continue into the weekend.”

The Dow Jones Industrial Average rose 0.29 per cent to end at 24,211.48 points, while the S&P 500 gained 0.29 per cent to 2,636.98.

The Nasdaq Composite added 0.54 per cent to 6,812.84.

Nine of the 11 major S&P 500 sectors were higher, with industrial and materials indexes leading the gainers.

The S&P 500 consumer staples index fell 0.93 per cent, hurt by drops of at least 1.2 percent in Procter & Gamble, Pepsico and Coca-Cola.

LendingClub plunged 15.53 per cent after the online lender lowered its quarterly revenue forecast.

The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting a rapid tightening of the labor market.

The report comes ahead of more comprehensive government payrolls data today that would be used by investors to gauge the strength of the labor market at a time when the Federal Reserve is almost certain to raise US interest rates next week.

Advancing issues outnumbered declining ones on the NYSE by a 1.70-to-1 ratio; on Nasdaq, a 1.75-to-1 ratio favoured advancers.

About 6.4 billion shares changed hands on US exchanges, below the 6.6 billion daily average for the past 20 trading days, according to Thomson Reuters data. — Reuters

MORE ON MMOTV