Cisco helps Wall Street extend streak of record highs

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By Yashaswini Swamynathan

U.S. stocks eked out enough gains on Thursday for the three main indexes to notch a record intraday high for the sixth straight session, helped by gains in Cisco.

The rally was sparked a week back by President Donald Trump’s vow of a ‘phenomenal’ tax announcement. Robust economic data has also been a boost, while bank stocks have risen on prospects of an upcoming interest rate hike.

Trump tweeted on Thursday: “Stock market hits new high with longest winning streak in decades. Great level of confidence and optimism – even before tax plan rollout!”

“The market is likely to take a breather after recklessly rising to continued record highs without a pause,” Perter Cardillo, chief market economist at First Standard Financial wrote in a note.

This type of action is due to the market expecting a perfect fiscal reform and that maybe placed on hold, he said.

The S&P 500 technology index .SPLRCT rose 0.29 percent and gave the broader index its biggest boost. Cisco (CSCO.O), which jumped 2.8 percent to $33.76 was the top stock on the three main indexes.

Adding to strong data points of late, a Labor Department report Thursday that showed the number of Americans filing for unemployment benefits rose less than expected last week.

At 9:38 a.m. ET (1438 GMT), the Dow Jones Industrial Average .DJI was up 14.36 points, or 0.07 percent, at 20,626.22, while the Nasdaq Composite .IXIC was up 10.13 points, or 0.17 percent, at 5,829.57.

The S&P 500 .SPX was up 0.96 points, or 0.04 percent, at percent, at 2,350.21. The index ended higher for the seventh session in a row on Wednesday, its first such streak since September 2013.

Six of the 11 major S&P sectors were higher, with utilities .SPLRCU and real estate .SPLRCR gaining the most, after two straight days of losses.

NetEase (NTES.O) jumped nearly 10 percent to $287.19 following the Chinese online game developer’s revenue beat.

Molina Healthcare (MOH.N) tumbled 16 percent to $50.35 after the health insurer reported a fourth-quarter loss and forecast 2017 profit far below estimates.

Alexion Pharma (ALXN.O) rose 2.9 percent to $135.84 after the company gave a 2017 revenue forecast that a Leerink analyst said would likely quell investor concerns.

Advancing issues outnumbered decliners on the NYSE by 1,425 to 1,132. On the Nasdaq, 1,231 issues rose and 972 fell.

The S&P 500 index showed 39 new 52-week highs and no new lows, while the Nasdaq recorded 75 new highs and eight new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)
Published at Thu, 16 Feb 2017 14:54:20 +0000

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