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Wall Street rises with healthcare rally after Trump's speech

Reuters 

By Noel Randewich

(Reuters) - The rose on Friday, helped by after blasted high drug prices but avoided taking aggressive measures to cut them.

and each rose over 1 percent while jumped 2.8 percent after Trump in a speech said foreign governments "extort" unreasonably low prices from U.S. drugmakers. His released a series of proposals to address high drug costs.

"They've walked the tightrope between cost savings for the American people and maximizing profits for publicly traded healthcare stocks," said Jake Dollarhide, of in Tulsa,

The S&P ended 1.47 percent higher, while the index <.NBI> rallied 2.68 percent.

The tech sector <.SPLRCT> slipped 0.32 percent, with dropping 0.38 percent after a nine-day winning streak that saw the maker edge closer to $1 trillion in market capitalisation.

Also weighing on tech was , which fell 2.15 percent on worries that a short-term surge in demand for from may be undermining the company's core business with computer gamers.

"Tech is giving back some of its gains. Market participants are not making aggressive bets after the week we've had, heading into the weekend," said Keith Lerner, at in "We're in a holding pattern today, digesting the strong gains of the week."

The <.DJI> rose 0.37 percent to end at 24,831.17 points, while the <.SPX> gained 0.17 percent to 2,727.72, its highest close since mid-March. The Composite <.IXIC> slipped 0.03 percent to 7,402.88.

For the week, rose 2.3 percent, the added 2.4 percent, and the climbed 2.7 percent.

During Friday's session, edged above 100-day moving average for the first time since April 18, following the S&P 500's similar move a day earlier. Some traders believe such developments mean the market is likely to move higher.

Volume on U.S. exchanges was 5.8 billion shares, light compared with the 6.6 billion-share average over the last 20 trading days.

With March-quarter reports mostly wrapped up, S&P 500 companies appear to have grown their earnings per share by 26 percent, according to I/B/E/S.

Due to increased expectations for corporate profits and a dip in stock prices since January, the S&P 500 is now trading at 16 times expected earnings, its lowest multiple in two years, according to Datastream.

"We have very strong fundamentals from an earnings perspective and valuations are looking a bit more reasonable than they were late last year," said Bill Northey, senior vice at

Boosting was , which rose 3 percent after upgraded the to "overweight," saying 5G opportunity will start to crystallize in the next few months.

slumped 33 percent after the Antivirus maker said it was investigating concerns raised by a former employee.

Advancing issues outnumbered declining ones on the NYSE by a 1.24-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored advancers.

The S&P 500 posted 30 new 52-week highs and three new lows; the recorded 137 new highs and 51 new lows.

(Additional reporting by in Bengaluru; Editing by and Leslie Adler)

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

First Published: Sat, May 12 2018. 02:06 IST
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