December 6, 2023

Stocks and Bonds: Broad Rally Lifts Shares to a Nearly 3-Year High

Stock indexes have more than doubled since hitting a 12-year low in March 2009. The fastest bull market since the 1950s has now erased most of the losses stemming from the financial crisis.

The Standard Poor’s 500-stock index reached its highest level since June 2008. It gained 11.99 points, or 0.90 percent, to 1,347.24. It remains 16 percent below the record high of 1,565 it reached in October 2007.

The Dow Jones industrial average also reached a high for the year, rising 115.49 points, or 0.93 percent, to 12,595.37. The Nasdaq composite index rose 21.66 points, or 0.77 percent, to 2,847.54.

Better-than-expected earnings reports from a variety of companies, including airlines and office products manufacturers, helped drive a broad rally that included all 10 company groups that make up the S. P. index. Industrial companies gained nearly 2 percent, the most of any group.

Shares of Delta Air Lines rose 11 percent after it reported a loss that was smaller than investors had expected.

Cummins, the engine maker, gained 8 percent after raising its earnings forecast for the year because of strong demand. United Parcel Service rose 1 percent after raising its own earnings estimate for the year.

“What we’re seeing now is a positive reinforcement of the fact that demand is rising around the world,” said Quincy Krosby, chief market strategist at Prudential Financial. That is occurring although some companies say rising costs are hurting their profits, Mr. Krosby said.

Ford shares rose 0.7 percent after the automaker reported its best first-quarter earnings since 1998. Ford beat Wall Street’s earnings estimates with stronger sales of new vehicles.

3M, which makes Post-it notes and Scotch tape, rose 1.9 percent after it raised its full-year earnings expectations. The company said quarterly profit rose 16 percent compared with a year ago, beating analysts’ estimates.

Interest rates were lower. The Treasury’s benchmark 10-year note rose 16/32, to 102 21/32, and the yield fell to 3.31 percent from 3.36 percent late Monday.

Article source:

Speak Your Mind