US stocks rise as banks and healthcare companies rise.
US stocks rise as banks and healthcare companies rise.
US stocks rose mostly on Monday because health care Companies ended up on the rise, while Apple and other technology companies continued to fall. Asian indices fell after weak economic data in China and a lack of progress in the trade negotiations between the United States and China.
Berkshire Hathaway, of Warren Buffett, owner of Geico and other insurance businesses, led the rally in financial stocks after it reported solid results over the weekend. The drug makers, including Eli Lilly, also went up. Apple suffered another heavy loss, which knocked down the market value of the technology giant below the $ 1 trillion mark.
Real estate companies, public services and other high-dividend stocks ended up with solid profits as high-growth stocks, such as technology and internet companies, fell. The smaller and more focused businesses in the United States also fell behind.
The big technology companies and the small ones were very affected during the fall of the market in October. Technology companies fell because investors worried about the trade dispute and about an increase in interest rates, which could erode future profits. Smaller companies are vulnerable to higher interest rates because they tend to have more debt.
Earnings for the S & P 500 companies are on track to grow about 20 percent this year, and analysts expect the company's earnings to grow another 10 percent next year, according to FactSet. But Jim Paulsen, chief investment strategist at the Leuthold Group, said he may be too optimistic because costs and interest rates are rising and global economic growth could fall.
"It's a double hit of slowing sales at the same time we can start (see pressure on) profit margins," he said. Paulsen said corporate profits could fall next year and that smaller companies may have a hard time dealing with that.
"Large companies tend to operate with higher profit margins, and have more space as a result of that to allow them to cut back and deal with a slowdown," he said.
The S & P 500 index added 15.25 points, or 0.6 percent, to 2,738.31. The Dow Jones Industrial Average rose 190.87 points, or 0.8 percent, to 25,461.70.
The Nasdaq compound sank 28.14 points, or 0.4 percent, at 7,328.85. The Russell 2000 index of shares of smaller companies fell 0.47 points to 1,547.51.
Shares fell in October, but last week was the best week of the market since March. One reason for that recovery was greater optimism about the trade talks, as Chinese officials and President Donald Trump said a telephone conversation between Trump and Chinese President Xi Jinping had gone well. On Monday, Xi promised to reduce costs for importers and increase the spending power of consumers, but did not address the technology policy dispute between the US. UU And China, a critical part of the commercial impasse.
Berkshire Hathaway said its profit quadrupled in the third quarter as the value of its investments increased. It also reported better results from its insurance and railroads divisions. Berkshire repurchased almost $ 1 billion in shares during the quarter, the largest amount in years. Its Class B shares rose 4.7 percent to $ 216.24. Other insurers and banks also rose.
Apple lost another 2.8 percent to $ 201.59. Shares fell on Friday after a weak outlook for the fourth quarter. Apple also said it will stop announcing how many iPhones it sold each quarter. Daniel Ives, of Wedbush, said that while Apple's announcement felt "frivolous", it is actually part of a strategy that seeks investors to see the company as a service provider and not just as a device vendor.
In early August, Apple became the first publicly traded company worth $ 1 trillion, but the decrease on Monday reduced its value to $ 958.6 billion.
After big gains at the end of last week, the Nikkei 225 index of Japan fell by 1.5 percent and the Kospi of South Korea fell by 0.9 percent. Hong Kong's Hang Seng index fell 2.1 percent.
US benchmark crude fell 0.1 percent to $ 63.10 per barrel in New York. Brent crude, used to quote international oils, added 0.5 percent to $ 73.17 a barrel in London.
Natural gas soared 8.6 percent to $ 3.57 per 1,000 cubic feet following cold weather forecasts in the coming days. According to the Department of Energy, almost half of all households in the US. UU They use natural gas as the main heating source. Its price often rises when investors expect a cold hit. Heating oil also rose 1.1 percent to $ 2.20 per gallon.
Wholesale gasoline lost 1 percent to $ 1.69 per gallon.
Britain's FTSE 100 rose 0.1 percent, while Germany's DAZ fell 0.2 percent. The CAC 40 in France was little changed.
The British pound rose despite the fact that the office of British Prime Minister Theresa May dismissed reports that the country is close to reaching a divorce agreement with the European Union. Authorities have said negotiators are on the verge of an agreement, which could be reached this month.
The pound rose to $ 1.3053 from $ 1.2963.
The prices of the bonds went up. The yield on the 10-year Treasury note fell to 3.20 percent from 3.21 percent at the end of Friday.
Gold fell 0.1 percent to $ 1,232.30 an ounce. Silver lost 0.7 percent to $ 14.65 an ounce. Copper dumped 1.8 percent to $ 2.76 a pound.
The dollar fell to 113.21 yen from 113.28 yen. The euro rose to $ 1.1418 from $ 1.1398.
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You can contact the AP Markets writer, Marley Jay, at http://twitter.com/MarleyJayAP
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