NEW YORK/January 02, 2018(AP)(STL.News)— U.S. stocks are starting the new year higher thanks in part to gains in technology companies and retailers, some of the market’s biggest gainers from 2017. Natural Gas prices are rising as the cold weather continues to grip much of the U.S. Bond Yields are also rising. Asian stocks climbed following strong economic data from China.
KEEPING SCORE: The Standard & Poor’s 500 index rose 14 points, or 0.5 percent, to 2,687 as of 10 a.m. Eastern time as investors got back to trading following a break for New Year’s Day on Monday. The S&P 500 built on its 19 percent climb in 2017. The Dow Jones industrial average climbed 110 points, or 0.5 percent, to 24,829. The Nasdaq composite jumped 65 points, or 1 percent, to 6,968. The Russell 2000 index of smaller-company stocks gained 8 points, or 0.6 percent, to 1,544.
CAN THEY DO IT AGAIN: Facebook rose $2.04, or 1.2 percent, to $178.50 and chipmaker Nvidia advanced $2.47, or 1.3 percent, to $195.97 as technology companies opened higher. The technology index of the S&P 500 surged almost 37 percent last year as big names including Facebook, Apple and Microsoft reached all-time highs. The Nasdaq climbed 28 percent.
Retailers also moved higher. Amazon added $9.22 to $1,178.70. Target rose $1.53, or 2.34 percent, to $66.78 and Kohl’s added $1.57, or 2.9 percent, to $55.80. Early indications suggest shoppers had a busy holiday season and investors will look for confirmation of those reports in the weeks to come. Media companies also did well in the early going. Netflix jumped $6.02, or 3.1 percent, to $197.98.
BONDS: Bond prices slid. The 10-year Treasury note advanced to 2.45 percent from 2.41 percent. The yield on 2-year note rose to 1.92 percent from 1.89 percent.
The increase in bond yields sent high-dividend stocks like utilities, household goods and real estate companies lower. Higher bond yields make those stocks less appealing to investors seeking income.
The Federal Reserve expects to keep raising interest rates this year. If so, it will do it under new leadership, as Fed governor Jerome Powell will replace Chair Janet Yellen in February.
FORCE-FUL PERFORMANCE: On the last day of the year, “Star Wars: The Last Jedi” surpassed “Beauty and the Beast” as the top grossing film in North America in 2017. Its gross will reach $1 billion in the next few days even before the movie opens in China. Both “The Last Jedi” and the live-action “Beauty and the Beast” were made by Disney, which rose $1.79, or 1.7 percent, to $109.30 Tuesday morning.
NEW YEARS’ RESOLUTION: Weight Watchers International climbed after it struck a deal with producer and recording artist DJ Khaled, who will represent the brand to millions of follows on Snapchat, Twitter, Instagram and Facebook. Weight Watchers got a big boost a few years ago from a deal with Oprah Winfrey that also included a substantial investment in the company. Its stock added $2.51, or 5.7 percent, to $46.79.
ENERGY: Benchmark U.S. crude dipped 6 cents to $60.36 a barrel in New York. Brent crude, used to price international oils, fell 20 cents to $66.67 barrel in London. A rally late in the year sent crude oil to its highest price since June 2015.
Natural gas futures climbed 10 cents, or 3.5 percent, to $3.06 per 1,000 cubic feet. Natural gas is mostly used to heat homes and demand often rises in frigid weather.
CURRENCY: The dollar fell to 112.20 yen from 112.64 yen. The euro rose to $1.2044 from $1.2012. The dollar declined steadily in 2017 and the ICE U.S. dollar index slumped 10 percent, its biggest decline since 2003. The improved global economy was responsible for much of that decline, however, and the weaker dollar makes U.S. exports less expensive in other markets.
OVERSEAS: Germany’s DAX fell 0.8 percent and France’s CAC 40 shed 0.6 percent. The British FTSE 100 retreated 0.5 percent. Markets were more upbeat earlier in Asia following some strong economic reports.
A survey by Chinese business magazine Caixin found manufacturing grew in December at the fastest rate in four months. In India, a survey showed manufacturing hit a five-year high in December. The Hang Seng in Hong Kong gained 2 percent to and Seoul’s Kospi gained 0.5 percent. Markets in Japan were closed for a holiday.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jayt
By Associated Press, published on STL.NEWS by St. Louis Media, LLC (TM)
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