Market report

Bank gains help stocks to record

Gains by banks and retailers led a broad rally in U.S. stocks Tuesday that helped drive the major stock indexes to record highs.

Investors were encouraged by news that a Senate committee cleared the way for a tax overhaul bill to go before the full Senate. Financial stocks also jumped after the nominee for Federal Reserve chairman, Jerome Powell, told another Senate committee that the Fed would consider easing up on bank regulations.

The S&P 500 index rose 25.62 points, or 1 percent, to 2,627.04. The Dow Jones industrial average gained 255.93 points, or 1.1 percent, to 23,836.71. The Nasdaq composite added 33.84 points, or 0.5 percent, to 6,912.36. The Russell 2000 index of smaller-company stocks picked up 23.12 points, or 1.5 percent, to 1,536.43.

Gainers outnumbered decliners more than 2-to-1 on the New York Stock Exchange.

Encouraging economic data and the latest batch of company earnings and deal news also helped drive the rally.

"When you're in a market where you're at new highs with the averages, in theory, nobody has losses," said Mark Chaikin, founder of Chaikin Analytics. "Given seasonal patterns, I expect that we'll see the market strong into year-end."

Early on, investors had their eye on Washington, where the Senate Budget Committee weighed the chamber's version of a sweeping tax bill. The committee voted 12-11 to pass the Republican tax plan late Tuesday afternoon. The measure, which would lower corporate tax rates, now advances to the full Senate. Republican leaders hope to have the Senate take it up later this week.

Another panel, the Senate Banking Committee, drew the spotlight early on as it heard testimony from Powell, who has been a member of the Fed's board since 2012 and is expected to win confirmation to succeed Janet Yellen.

"Powell's testimony basically said that he's a Janet Yellen on steroids," said Chaikin. "His testimony gave the market a lot of confidence."

Banks and other financial stocks had their best day since March. The sector is up 15.2 percent this year.

JPMorgan Chase and Bank of America notched their best gains since April. Shares in JPMorgan rose $3.43, or 3.5 percent, to $101.36. Bank of America rose $1.05, or 3.9 percent, to $27.64.

Investors also got a double dose of encouraging data on the U.S. economy Tuesday.

The Conference Board said that its consumer confidence index rose this month to its highest level since November 2000. Economic growth clocked at a healthy 3 percent annual pace in the third quarter, and the unemployment rate has fallen to a 17-year low of 4.1 percent.

A separate index showed U.S. home prices rose at the fastest pace in more than three years in September, fueled by a record-low supply of homes for sale. Homebuilders' shares rose, led by KB Home, which gained $1.17, or 4.1 percent, to $30.

The latest corporate deal news also moved the market.

Buffalo Wild Wings jumped 6.3 percent after it agreed to be acquired by Arby's for $157 a share. Buffalo was at $117.25 a share before reports about a possible deal emerged two weeks ago. The stock added $9.20 to $155.60.

Bond prices rose. The yield on the 10-year Treasury fell to 2.34 from 2.35 percent late Monday.

Benchmark U.S. crude dropped 12 cents to settle at $57.99 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, declined 23 cents to close at $63.61.

Business on 11/29/2017

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