(Reuters) – Wall Street’s main indexes were higher on Tuesday, the first trading day of the year, buoyed by gains in technology and consumer discretionary stocks.
Major stock indexes closed out 2017 with their best performance since 2013, powered by a combination of strong economic growth, solid corporate earnings, low interest rates and hopes of corporate tax cuts.
“The first week of trading usually suggests the overall trend of the markets which we expect to be positive,” Peter Cardillo, chief market economist at First Standard Financial in New York, wrote in a note.
Oil prices hovered near their mid-2015 highs on Tuesday amid large anti-government rallies in major exporter Iran and ongoing supply cuts led by OPEC and Russia. [O/R]
Gold and copper prices continued their upward march, but the greenback began the year on the back foot, with the dollar index .DXY slipping to its weakest level since September.
“While we don’t expect the Iranian unrest to reach a full blown political situation just yet, the protest will add to an already positive uptrend in oil and gold prices,” Cardillo said.
December payrolls report, data on manufacturing and service sectors are among leading indicators expected during the week, and will be scrutinized for signs of improving economic health and the number of interest rate hikes this year.
Minutes from the Federal Reserve’s December meeting, when the central bank raised rates for the fourth time since the 2008 financial crisis, will be issued on Wednesday.
At 9:34 a.m. ET (1434 GMT), the Dow Jones Industrial Average .DJI was up 112.06 points, or 0.45 percent, at 24,831.28 and the S&P 500 .SPX was up 9.49 points, or 0.35 percent, at 2,683.1. The Nasdaq Composite .IXIC was up 21.51 points, or 0.31 percent, at 6,924.90.
Six of the 11 major S&P sectors were higher, led by gains in technology .SPLRCT and consumer discretionary stocks .SPLRCD.
Shares of Walt Disney (DIS.N) rose 1.6 percent, giving the biggest boost to the Dow, after brokerage Macquire upgraded the company’s stock to “outperform”.
Shares of casino operators Wynn resorts (WYNN.O), Las Vegas Sands (LVS.N) and Melco Resorts & Entertainment (MLCO.O) were down after a report showed lower-than-expected rise in Macau gambling revenue in December.
Abbott Labs (ABT.N) jumped 2.6 percent after JPMorgan and Morgan Stanley upgraded the healthcare company’s stock to “overweight”.
Advancing issues outnumbered decliners on the NYSE by 1,938 to 652. On the Nasdaq, 1,678 issues rose and 743 fell.
Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila