Stocks Climb, Remaining on Track for Weekly Gains
September 28 2017 - 5:33PM
Dow Jones News
By Michael Wursthorn
-- Dow Jones Industrial Average rises
-- European stocks extend winning streak
-- Treasury yields steady
McDonald's led the Dow Jones Industrial Average higher Thursday,
while the S&P 500 inched up to a fresh high.
Major U.S. stock indexes are poised to post solid gains for the
month and the third quarter on Friday, as investors remain largely
upbeat about the health of the U.S. economy and American companies.
The Dow industrials are up 2% so far in September, and are on track
to log an eighth consecutive quarterly gain.
Thursday's session was a relatively muted overall, as investors
picked up shares in pockets of the market that had declined
recently and assessed Republicans' proposal to overhaul the tax
code, analysts said.
"It's likely we'll see some of that churning in a directionless
market while the specifics of the [tax] legislation are debated,"
said Mike Allison, an Eaton Vance portfolio manager.
The Dow industrials rose 40.49 points, or 0.2%, to 22381.20,
while the S&P 500 added 3.02 points, or 0.1%, to 2510.06 -- its
38th record close of the year. The Nasdaq Composite added less than
a point and closed at 6453.45.
McDonald's jumped $3.44, or 2.2%, to $157.49, accounting for
more than half of the Dow industrials' gain. The fast-food chain's
stock has been struggling this month, falling 1.6% so far, putting
it on track for its first monthly decline since October of last
year. The stock rallied Thursday after Longbow Research upgraded it
to a "buy" from "neutral." McDonald's remains up 29% for the year
so far.
Shares of material companies led the S&P 500 higher
Thursday, rising 0.7% as several chemicals companies and mining
firms notched gains. Freeport-McMoRan was one of the leaders, up 42
cents, or 3%, to 14.42, while Eastman Chemical rose 2.61, or 3%, to
89.96.
Utilities companies in the S&P 500 rose 0.3% after declining
in seven of the previous eight sessions.
Some analysts and investors said they expect the tepid trading
environment to continue until the earnings seasons kicks off in
earnest next month, barring any geopolitical developments or major
legislative changes. That could lead to more so-called rotational
trading throughout the market, as investors sell shares that have
performed well this year and buy those that have lagged behind,
they added.
"There's not a whole lot of follow through on the rallies," said
Bruce Bittles, chief investment strategist at R.W. Baird. "It feels
like we're trading in a range of just slightly higher every
time."
The Stoxx Europe 600 rose 0.2%. Japan's Nikkei Stock Average
added 0.5%, recovering from Wednesday's declines, while Chinese
markets faced selling pressure ahead of a week-long break. The
Shanghai Composite Index fell 0.2% and Hong Kong's Hang Seng Index
fell 0.8% to a six-week low.
--Riva Gold contributed to this article.
Write to Michael Wursthorn at Michael.Wursthorn@wsj.com
(END) Dow Jones Newswires
September 28, 2017 17:18 ET (21:18 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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