Stocks Bounce After Extended Selloff, Led by Tech Sector
August 22 2017 - 1:43PM
Dow Jones News
By Michael Wursthorn and Christopher Whittall
Major U.S. stock indexes rose Tuesday as investors snapped up
shares of technology and energy companies.
The Dow Jones Industrial Average gained 155 points, or 0.7%, to
21859 in recent trading. The S&P 500 added 0.8%, and the Nasdaq
Composite rose 1.2%.
Meanwhile, investments considered to be relatively safe stores
of value, including gold and U.S. Treasury bonds, retreated.
The broad upswing in U.S. stocks extended gains for the Dow
industrials after the index suffered its biggest two-week decline
of the year. Tensions between the U.S. and North Korea, as well as
questions over whether the Trump administration can enact agenda
items such as a tax overhaul, have weighed on stocks in recent
weeks.
While the political climate continued to be a concern, investors
said the strong earnings quarter, steady economic growth and
slightly more attractive valuations following recent selloffs were
driving markets.
"We're focusing less and less on the political backdrop," said
Lew Piantedosi, director of growth equity for Eaton Vance. "It's
the strength of the economy, not just here, but globally, that
matter most to stocks. Earnings have been reasonably healthy for
the last few quarters, too."
Shares of energy companies in the S&P 500 rose 0.7%, with
Oneok and Cabot Oil & Gas posting some of the biggest
advances.
Technology companies in the S&P 500 rose 1.3% on gains in
shares of Seagate Technology and Micron Technology, among
others.
Retailers were on the upswing, too. Shares of Macy's gained 4.9%
after the company said it hired a senior eBay executive and
streamlined its top management. Shoe retailer DSW rose 21% after it
posted same-store sales growth for the first time in six
quarters.
Investors are looking ahead to the Jackson Hole economic
symposium later this week. The roster of top central bankers
includes Federal Reserve Chairwoman Janet Yellen and European
Central Bank President Mario Draghi, who will gather at the annual
conference that kicks off Thursday.
Investors are watching for further details on the Fed's plans to
scale back its balance sheet and clues on when the ECB could trim
its asset purchases, which have helped underpin markets in recent
years.
"We've been conditioned to expect something out of Jackson Hole
each year," said Krishna Memani, OppenheimerFund's chief investment
officer. "If there is a surprise, it'll come from [Mr.]
Draghi."
Government bond prices edged lower, with the yield on the
10-year U.S. Treasury note rising to 2.210%, according to Tradeweb,
from 2.182% on Monday. Yields rise as prices fall. Gold was down
0.4% to $1,291 a troy ounce.
The WSJ Dollar Index, which tracks the dollar against a basket
of 16 currencies, rose 0.3% after declining slightly on Monday.
Stocks beyond the U.S. were mostly higher Tuesday. The Stoxx
Europe 600 rose 0.8%, buoyed by gains in mining shares. Stock
markets in the Asia-Pacific region mostly pushed higher, but the
Nikkei Stock Average slipped less than 0.1%, notching its 11th
decline in 13 trading sessions.
Ese Erheriene contributed to this article.
Write to Michael Wursthorn at Michael.Wursthorn@wsj.com and
Christopher Whittall at christopher.whittall@wsj.com
(END) Dow Jones Newswires
August 22, 2017 13:28 ET (17:28 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.