Stock Market News For December 07, 2016
Zacks Investment Research | Dec 06, 2016 10:22PM ET
Markets ended in positive territory for the second consecutive sessions on Tuesday as Trump induced financials rally continued to have a positive impact on stocks. Increasing chances of a December hike boosted financial stocks further. Meanwhile, renewed investor’s interest in holding on to high-dividend paying stocks helped telecom sector to register healthy gains. The blue-chip index ended at all-time highs for the second straight session.
For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) rose 0.2%, to close at 19,251.78. The S&P 500 increased more than 0.3% to close at 2,212.23. The tech-laden Nasdaq Composite Index closed at 5,333.00, gaining 0.5%. Meanwhile, the fear-gauge CBOE Volatility Index (VIX) dropped nearly 5.3% to settle at 11.50. A total of around 7.1 billion shares were traded on Tuesday, higher than the last 20-session average of 7.9 billion shares. Advancers outpaced declining stocks on the NYSE. For 69% stocks that advanced, 28% declined.
Financials Rally Continues, Telecom Surge
Financial sector has performed impressively since Trump’s victory in the Presidential election as a number of promises, including tax-cuts, made by him during the campaign are expected to have a positive impact on the sector. Moreover, growing chances of a rate hike in this month’s policy meeting following release of encouraging economic data also bores well for the sector. October’s factory orders data that was released yesterday was another addition to the clutch of encouraging economic reports.
The Commerce Department reported that new orders for manufactured goods rose for the fourth consecutive months by 2.7% in October to $469.4 billion. This was also higher than the consensus estimate and upwardly revised September’s increases of 2.6% and 0.6%, respectively. The Financial Select Sector SPDR ETF (NYSE:XLF) gained 0.9% and emerged as the top performing sector among the broader S&P 500 sectors.
Key stocks from the sector including Citigroup Inc (NYSE:C). ( .
Separately, investors desire to allocate their assets in dividend paying stocks helped telecom sectors gain significantly on Tuesday. Also, Trump announced that Japan-based telecom firm, SoftBank Group Corp. (T ) gained 1.8%, 1.5% and 1.9%, respectively.
Stocks That Made Headlines
Equinix (EQIX) to Buy Certain Data Center Assets from Verizon
Equinix Inc (NASDAQ:EQIX). (Read More )
Apple (AAPL) Faces a Setback as SCOTUS Favors Samsung?
Things did not go Apple Inc (NASDAQ:AAPL).’s (Read More )
MasterCard Rewards Shareholders with 16% Dividend Hike
Ushering in good news for shareholders, MasterCard Inc. (Read More )
Alaska Air Group a Step Closer to Buying Virgin America
Alaska Air Group (Read More )
Conns' (CONN) Q3 Loss Narrower than Expected; Stock Up
Shares of Conn's, Inc. (Read More )
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