Wall Street up as expectations of broader conflict in Syria recede
April 16, 2018GLOBAL MARKETS-U.S. stocks rise as oil, bond prices fall on ebbing Syria fears
April 16, 2018By Sruthi Shankar
April 16 (Reuters) – U.S. stocks rose on Monday, boosted by healthcare stocks and on easing fears that the recent U.S.-led missile attack on Syria would escalate into a broader conflict.
Merck rose 2.5 percent after the company presented positive data on its cancer drug Keytruda, driving a 0.7 percent gain in the healthcare index.
“The action was well-received … and that’s giving a chance for investors to focus on macro news and earnings,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Attention turned to what is expected to be a robust first-quarter earnings season.
Shares of JB Hunt Transport Services jumped 7 percent after the trucking company’s profit topped estimates.
But Bank of America edged lower despite reporting a better-than-expected increase in quarterly profit.
“People are optimistic in the earnings season … but there are a lot of forces working in the market – technicals, earnings and geopolitics, which is the biggest wild card,” said J.J. Feldman, portfolio manager at Los Angeles-based Miracle Mile Advisors.
At 11:10 a.m. ET, the Dow Jones Industrial Average was up 0.82 percent at 24,560.96. The S&P 500 gained 0.65 percent to 2,673.6 and the Nasdaq Composite rose 0.4 percent at 7,135.34.
All the 11 major S&P sectors were higher, with a 1.2 percent gain in the utilities index leading the gainers.
Shares of optical components makers Acacia Communications, Oclaro, Lumentum and Finisar took a beating after Reuters reported that the U.S. government was banning American companies from selling components to Chinese telecom equipment maker ZTE Corp .
Netflix fell more than 2 percent. The company is expected to reports results after the closing bell on Monday.
Advancing issues outnumbered decliners on the NYSE for a 2.90-to-1 ratio. On the Nasdaq, a 1.71-to-1 ratio favored advancers.
