US open: Stocks start New Year on strong note
Wall Street looks headed to start the year firmly on the front foot, amid sizeable gains on all the main indices and against the backdrop of a weaker US dollar and heavy losses in Treasuries.
At 1614 GMT, the Dow Jones Industrials Average was up by 0.24% or 58.26 points at 24,777.48, alongside an advance of 0.66% or 17.65 points to 2,691.26 on the S&P 500 and an advance of 1.24% or 86.35 points for the Nasdaq Composite.
By industry groups, pacing gains at the start of the New Year were: Iron & Steel (3.07%), Industrial metals (3.02%) and Speciality Retailers (2.90%).
In the background, the US dollar spot index was 0.40% lower to 91.87, while the yield on the benchmark 10-year US Treasury note was climbing six basis points to 2.47%.
CMC Markets analyst David Madden said: "The Dow Jones, S&P 500 and NASDAQ 100 are all in positive territory as the bullish sentiment that was alive and well last year has slipped into 2018. Traders are still optimistic the US tax reforms will boost corporate profitability, and could see higher dividends and or stock buybacks. The weakness in the US dollar is also helping international investors gain exposure to the American markets.
"The US manufacturing report for December came in at 55.1, its highest reading since April 2015. The US economy is continuing to move in the right direction which is giving traders further reason to be optimistic about the stock market."
IHS Markit's factory sector purchasing managers' index for December climbed to 55.1 points - its best level since March 2015 - versus a reading of 53.9 for November.
"The combination of strengthening growth, a solid labour market and rising prices will add to expectations that the Fed will remain on track for another rate hike in the near future, with March looking a likely possibility," said Chris Williamson, chief business economist at IHS Markit.
Corporate news was sparse, although Apple was making headlines after analysts at Piper Jaffray reiterated their 'outperform' stance and $200 target price for the iPhone maker, telling clients the company was in a "super-long cycle".
Software heavyweight Oracle on the other hand was under pressure on the heels of a report that Amazon.com and Salesforce.com were developing their own in-house database solutions.
Dow Jones - Risers
Walt Disney Co. (DIS) $110.82 2.76%
General Electric Co. (GE) $17.77 1.83%
Intel Corp. (INTC) $46.79 1.36%
Apple Inc. (AAPL) $171.37 1.26%
Dowdupont Inc. (DWDP) $72.11 1.25%
Nike Inc. (NKE) $63.11 0.90%
Cisco Systems Inc. (CSCO) $38.64 0.89%
Verizon Communications Inc. (VZ) $53.34 0.77%
Wal-Mart Stores Inc. (WMT) $99.48 0.74%
Chevron Corp. (CVX) $126.29 0.71%
Dow Jones - Fallers
Travelers Company Inc. (TRV) $133.40 -1.65%
3M Co. (MMM) $233.13 -1.11%
Procter & Gamble Co. (PG) $91.03 -0.93%
Caterpillar Inc. (CAT) $156.73 -0.54%
American Express Co. (AXP) $98.83 -0.48%
Coca-Cola Co. (KO) $45.78 -0.22%
United Technologies Corp. (UTX) $127.50 -0.06%
Johnson & Johnson (JNJ) $139.68 -0.03%
Goldman Sachs Group Inc. (GS) $255.18 0.16%
JP Morgan Chase & Co. (JPM) $107.17 0.22%
S&P 500 - Risers
Advance Auto Parts (AAP) $106.97 7.29%
Endo International Plc (ENDP) $8.15 5.10%
Southwestern Energy Co. (SWN) $5.85 4.84%
Micron Technology Inc. (MU) $43.05 4.70%
AutoZone Inc. (AZO) $744.53 4.66%
Baxter International Inc. (BAX) $67.60 4.58%
Tenet Healthcare Corp. (THC) $15.85 4.52%
O'Reilly Automotive Inc. (ORLY) $251.18 4.42%
Nordstrom Inc. (JWN) $49.44 4.35%
United States Steel Corp. (X) $36.71 4.32%
S&P 500 - Fallers
VeriSign Inc. (VRSN) $110.92 -3.08%
SCANA Corp. (SCG) $38.87 -2.34%
Wynn Resorts Ltd. (WYNN) $164.90 -2.19%
Chubb Corp. (CB) $143.28 -2.13%
XL Group Ltd (XL) $34.44 -2.05%
Marriott International - Class A (MAR) $133.26 -1.82%
Brown Forman Corp. Class B (BF.B) $67.44 -1.79%
Eaton Corporation plc (ETN) $77.68 -1.76%
PG&E Corp. (PCG) $44.07 -1.70%
Southern Co. (SO) $47.28 -1.68%
Nasdaq 100 - Risers
Incyte Corp. (INCY) $100.49 6.10%
Ctrip.Com International Ltd. Ads (CTRP) $46.29 4.97%
Micron Technology Inc. (MU) $43.05 4.70%
O'Reilly Automotive Inc. (ORLY) $251.18 4.42%
Netflix Inc. (NFLX) $200.22 4.30%
JD.com, Inc. (JD) $43.10 4.05%
Liberty Global Plc Lilac Class C (LILAK) $20.67 3.92%
Liberty Global Plc Lilac Class A (LILA) $20.90 3.72%
Twenty-First Century Fox Inc Class A (FOXA) $35.79 3.65%
Biogen Inc (BIIB) $329.75 3.51%
Nasdaq 100 - Fallers
Wynn Resorts Ltd. (WYNN) $164.90 -2.19%
Marriott International - Class A (MAR) $133.26 -1.82%
Sirius XM Holdings Inc (SIRI) $5.28 -1.40%
Automatic Data Processing Inc. (ADP) $116.10 -0.93%
Monster Beverage Corp (MNST) $62.94 -0.56%
Fastenal Co. (FAST) $54.45 -0.44%
Mondelez International Inc. (MDLZ) $42.68 -0.28%
Kraft Heinz Co. (KHC) $77.55 -0.27%
Intuit Inc. (INTU) $157.49 -0.18%
Verisk Analytics Inc. (VRSK) $95.86 -0.15%