Tech, health care companies big gainers as US stocks rally
U.S. stocks were broadly higher in early trading Monday, with technology and health care companies posting solid gains. Energy companies also rose, but lagged the rest of the market as the price crude oil headed lower. Investors were weighing the latest company earnings and deal news.
KEEPING SCORE: The S&P 500 index rose 13 points, or 0.5 percent, to 2,669 as of 9:51 a.m. Eastern Time. The Dow Jones industrial average gained 166 points, or 0.7 percent, to 24,526. The Nasdaq added 19 points, or 0.3 percent, to 7,126. The Russell 2000 index of smaller-company stocks picked up 4 points, or 0.3 percent, to 1,554.
ICAHN’S GAMBLE: Carl Icahn’s company has struck a roughly $ 1.85 billion deal that would fuse the gaming and hotel operations of Tropicana Entertainment to Eldorado Resorts Inc. Tropicana vaulted 27.3 percent to $ 70. Eldorado jumped 20.2 percent to $ 42.90.
C-SUITE SHAKEUP: Shares in WPP, the world’s largest ad agency, fell 6.8 percent to $ 78.84 after its CEO, Martin Sorrell, resigned over an investigation into personal misconduct. Analysts say his departure could leave the company he founded three decades ago rudderless, but could also see parts sold off for higher value.
WAY TO DELIVER: Domino’s rose 1 percent to $ 232.61 after the pizza chain said that it will now deliver to the great outdoors, which has been bringing pizzas to doorsteps for more than half a century, will now deliver to beaches, parks and other outdoor spots.
ENERGY: Oil prices fell back from spikes last week on fears over an escalation of strife in the Middle East. Benchmark U.S. crude declined 61 cents to $ 66.78 per barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, slid 61 cents to $ 71.97 per barrel.
BOND YIELDS: Bond prices fell. The yield on the 10-year Treasury rose to 2.85 percent from 2.83 percent late Friday.
CURRENCIES: The dollar fell to 107.25 yen from 107.41 yen on Friday. The euro strengthened to $ 1.2392 from $ 1.2334.
OVERSEAS: In Europe, Germany’s DAX was off 0.3 percent, while the CAC 40 in France fell 0.2 percent. The FTSE 100 in Britain dropped 0.7 percent. Earlier in Asia, Japan’s Nikkei 225 index rose 0.3 percent, while Hong Kong’s Hang Seng dropped 1.6 percent. South Korea’s Kospi edged 0.1 percent higher. Australia’s S&P ASX 200 picked up 0.2 percent.