US close: Stocks end higher as traders mull data, Italian banks
US stocks closed higher on Tuesday as investors sifted through economic data and mulled over reports of a possible state bailout of Italian bank Monte dei Paschi.
The Dow Jones Industrial Average finished at an all-time high for the second day in a row, rising 0.2% to 19,251.78 points. The S&P 500 gained 0.3% to 2,212.23 points while the Nasdaq grew 0.5% to 5,333 points.
Oil prices dipped after surging on Monday on the back of last week's landmark OPEC deal to cut production. West Texas Intermediate fell 1.9% to $50.81 per barrel and Brent declined 2.1% to $53.81 per barrel at 2147 GMT.
On the data front, the trade deficit widened to $42.6bn in October, from $36.2bn the previous month, and was larger than the $42bn expected.
Exports dropped by $3.4bn month-on-month to $186.4bn, as imports increased by $2bn to $229bn.
New factory orders in the US increased 2.7%, following an upwardly revised 0.6% rise in September, which was the biggest gain in 18 months. Economists had expected a 2.6% gain.
US durable goods orders were up 4.6% in October, from 4.8% the previous months, and well ahead o 3.4% consensus forecast.
Non-farm productivity, a measure of goods and services made per hour, was flat at a seasonally adjusted 3.1% in the third quarter, below the 3.3% consensus forecast.
Elsewhere, European stocks were on the front foot, boosted by a rally in the banking sector following reports that Italy’s government might bail out troubled Monte dei Paschi this week.
“Indeed, optimism about banks is driving markets in Europe firmly higher, on expectations that some sort of bail-in for Italian institutions is on the cards,” said IG’s Chris Beauchamp.
“This would provide a real boost to risk appetite, similar to that seen when the ECB first announced its QE programme, and would certainly do more than just a measly extension to the easing timeframe, which is quite possibly all that Mario Draghi can offer at the ECB meeting on Thursday.”
The news comes in the wake of the resignation of Italy’s Prime Minister Matteo Renzi after the referendum on Sunday failed to go his way.
Among corporate stocks, Boeing regained ground after President-elect Donald Trump tweeted that an order for a new Air Force One plane should be cancelled due to increasing costs.
TherapeuticsMD shares gained as the drug developer announced positive data late on Monday from a menopause drug trial.
Ford Motor Co. advanced after the car maker on Monday said it plans to raise $2.8bn in new long-term financing.
Dow Jones - Risers
Goldman Sachs Group Inc. (GS) $231.31 1.24%
Verizon Communications Inc. (VZ) $50.36 1.23%
Intel Corp. (INTC) $34.72 0.96%
Travelers Company Inc. (TRV) $116.83 0.83%
Caterpillar Inc. (CAT) $95.22 0.82%
Apple Inc. (AAPL) $109.95 0.77%
Walt Disney Co. (DIS) $100.68 0.70%
Wal-Mart Stores Inc. (WMT) $70.36 0.60%
JP Morgan Chase & Co. (JPM) $83.72 0.52%
American Express Co. (AXP) $72.31 0.39%
Dow Jones - Fallers
Nike Inc. (NKE) $50.57 -2.47%
Home Depot Inc. (HD) $128.74 -0.72%
Cisco Systems Inc. (CSCO) $29.33 -0.68%
Microsoft Corp. (MSFT) $59.95 -0.45%
Chevron Corp. (CVX) $112.76 -0.43%
Visa Inc. (V) $77.11 -0.26%
E.I. du Pont de Nemours and Co. (DD) $72.76 -0.22%
Unitedhealth Group Inc. (UNH) $157.32 -0.20%
Coca-Cola Co. (KO) $40.57 -0.12%
Procter & Gamble Co. (PG) $82.91 -0.10%
S&P 500 - Risers
Autodesk Inc. (ADSK) $76.32 7.22%
Netflix Inc. (NFLX) $124.57 4.54%
Borg Warner Inc. (BWA) $39.16 4.45%
Carmax Inc. (KMX) $60.50 4.17%
United Continental Holdings Inc. (UAL) $70.98 3.97%
Wynn Resorts Ltd. (WYNN) $102.18 3.87%
CBRE Group Inc (CBG) $31.75 3.72%
Western Union Co. (WU) $21.64 3.54%
Vertex Pharmaceuticals Inc. (VRTX) $78.12 3.40%
Newfield Exploration Co (NFX) $47.18 3.40%
S&P 500 - Fallers
Chipotle Mexican Grill Inc. (CMG) $366.37 -7.55%
Interpublic Group of Companies Inc. (IPG) $23.27 -3.04%
Nike Inc. (NKE) $50.57 -2.47%
Intuitive Surgical Inc. (ISRG) $621.59 -2.41%
Humana Inc. (HUM) $204.30 -2.17%
Omnicom Group Inc. (OMC) $84.26 -2.08%
Mattel Inc. (MAT) $29.19 -2.08%
Kansas City Southern (KSU) $83.81 -1.97%
Pioneer Natural Resources Co. (PXD) $184.77 -1.85%
Helmerich & Payne Inc. (HP) $79.95 -1.71%
Nasdaq 100 - Risers
Autodesk Inc. (ADSK) $76.32 7.22%
Netflix Inc. (NFLX) $124.57 4.54%
Vertex Pharmaceuticals Inc. (VRTX) $78.12 3.40%
Dish Network Corp. (DISH) $58.51 3.27%
Western Digital Corp. (WDC) $63.85 2.83%
Micron Technology Inc. (MU) $19.06 2.42%
Incyte Corp. (INCY) $107.21 2.34%
Charter Communications Inc. (CHTR) $276.32 1.99%
Sirius XM Holdings Inc (SIRI) $4.41 1.85%
Skyworks Solutions Inc. (SWKS) $76.17 1.80%
Nasdaq 100 - Fallers
Intuitive Surgical Inc. (ISRG) $621.59 -2.41%
Mattel Inc. (MAT) $29.19 -2.08%
Shire Plc Ads (SHPG) $172.77 -2.05%
Cerner Corp. (CERN) $47.55 -1.65%
NetEase Inc. Ads (NTES) $222.65 -1.56%
Citrix Systems Inc. (CTXS) $87.62 -1.54%
PACCAR Inc. (PCAR) $64.43 -1.50%
Ctrip.Com International Ltd. Ads (CTRP) $42.38 -1.37%
CSX Corp. (CSX) $36.05 -1.31%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $254.22 -1.31%