U.S. Stocks Climb to Record Highs as Energy, Tech Shares Rally

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(Bloomberg) -- U.S. stocks rallied to new highs as investors turned their focus to the Federal Reserve’s first policy decision and outlook since the U.S. elections due on Wednesday. The Dow Jones Industrial Average climbed for a seventh straight session and is fewer than 90 points from crossing 20,000.

The S&P 500 Index added 0.7 percent at 2,271.72 at 4 p.m. in New York. The Dow rose 0.6 percent to 19,911.21 while the Nasdaq 100 jumped 1.3 percent to 4,935.84, the highest ever. Small-cap shares were little changed, trailing S&P 500 for the second day in a row.

  • Nine of 11 S&P 500 industry groups rose, with industrial and materials shares down no more than 0.2%
  • Tech companies up 1.3%, with gains of at least 2.1% in Facebook Inc. (FB), Intel Corp. (INTC), Red Hat Inc. (RHT), CA Inc. (CA) and Seagate Technology Plc (STX)
  • High-dividend groups including phone and utility companies gained at least 0.6%; consumer staples reversed earlier losses to add 0.4%
  • WTI crude futures were little changed after rallying earlier. Contracts at the U.S. equity close traded around $52.81 a barrel, as the International Energy Agency said global oil markets will swing from surplus to deficit in the first half of 2017 as OPEC and other producers follow through on an accord to cut supply
  • A U.S. interest-rate increase is seen as a virtual certainty by traders, with market-implied probabilities standing at 100% for the decision Wednesday and all 77 Bloomberg-surveyed economists expecting a 25 basis-point increase
  • Investors will focus on how policy makers may change their 2017 forecasts, and what Fed Chair Janet Yellen will say about the economic outlook
  • EARNINGS:
  • Before market Wednesday: Joy Global Inc (JOY)
  • After market Wednesday: Arrowhead Pharmaceuticals Inc (ARWR), Ocean Rig UDW Inc. (ORIG), Civitas Solutions Inc. (CIVI), Pier 1 Imports Inc. (PIR), Apogee Enterprises Inc. (APOG), Empire Co Ltd (EMP/A CN)

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