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Wall St. higher as healthcare, bank stocks gain

Reuters 

By Sinead Carew

(Reuters) - Wall Street's major indexes on Tuesday extended the New Year rally on investor optimism ahead of quarterly earnings reports.

The 500 and Nasdaq were on track for their sixth closing record in a row. The Dow had snapped a 3-day run of closing records in the previous day's session.

Defensive sectors - utilities, and - were out of favour, while rebounded to reverse Monday's losses.

"While investor sentiment continues to be high and confidence is high, there's still some caution from investors. Where do you position yourself" if wage growth pushes up inflation? asked Jeffrey Carbone, at in Huntersville, "It becomes a question of how much longer can this go, how much higher."

At 3:01 p.m. ET, the <. DJI> rose 124.84 points, or 0.49 percent, to 25,407.84, the 500 <. SPX> gained 7.9 points, or 0.29 percent, to 2,755.61 and the <. IXIC> added 16.95 points, or 0.24 percent, to 7,174.34.

The fell 0.8 percent, while the sector <. SPLRCR> was down 1 percent. <. SPLRCL> fell 1.6 percent.

Investors were hopeful about global economic growth and tax-cut led gains for corporate earnings, but they are anxiously watching whether any economic boost from the tax overhaul could overheat inflation and lead to a sharper rise in interest rates.

"So long as inflation remains at around these levels, it will certainly support the multiples that we have," said Tim Dreiling, of U. S.

After a lukewarm December jobs report, signs of a pickup in inflation could come in the monthly consumer price report due on Friday.

Big U. S. banks are set to kick off fourth-quarter earnings season on Friday.

Investors will seek more detail on the impact of corporate tax cuts, and what companies plan to do with the savings.

Profits for 500 companies are expected to rise 11.8 percent in the fourth quarter, compared with an 8-percent increase a year earlier, according to I/B/E/S.

A handful of retailers, including , and have reported solid rises in same-store sales for the holiday period and raised fourth-quarter profit forecasts.

was the biggest boost for the Dow with a 2.4-percent increase, after it said it delivered 763 jetliners in 2017, likely retaining its title as the world's biggest

The healthcare sector <. SPXHC> was boosted by a 1.6-percent rise in , a 4.9-percent gain in and a 7.9-percent jump in shares.

The financial sector was helped by a rise in U. S. 10-year Treasury yields to a 10-month high after the of Japan said it would trim purchases of bonds.

Chip were the biggest drag on the technology sector <. SPLRCT>, which was down 0.09 percent. fell 2.4 percent after reports that systems running on its chips slowed after released patches for security threats.

Declining issues outnumbered advancing ones on the NYSE by a 1.23-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favoured decliners.

The 500 posted 122 new 52-week highs and 3 new lows; the recorded 126 new highs and 23 new lows.

(Additional reporting by in Bengaluru; Editing by and Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 10 2018. 02:01 IST
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