Market Report

Tech, health sectors buoy stocks

FILE - In this Dec. 27, 2017, file photo, a logo for the New York Stock Exchange is displayed above the trading floor. (AP Photo/Mark Lennihan, File)
FILE - In this Dec. 27, 2017, file photo, a logo for the New York Stock Exchange is displayed above the trading floor. (AP Photo/Mark Lennihan, File)

Technology and health care companies led U.S. stocks broadly higher Thursday, setting the market on track to break a two-week losing streak.

Some encouraging economic data helped put investors in a buying mood, though trading volume was relatively subdued as markets reopened after the Independence Day holiday in the U.S.

The S&P 500 index rose 23.39 points, or 0.9 percent, to 2,736.61. The Dow Jones industrial average gained 181.92 points, or 0.8 percent, to 24,356.74. The Nasdaq composite added 83.75 points, or 1.1 percent, to 7,586.43. The Russell 2000 index of smaller-company stocks picked up 19.06 points, or 1.1 percent, to 1,679.48.

Wall Street could be in for a bumpier ride today, when U.S. tariffs on billions of Chinese goods will be in effect. Investors will also be watching out for the Labor Department's latest monthly report on jobs and wages.

"It feels like the market is responding to the stronger economic data and some easing of the trade tensions overnight and focusing a bit more on fundamentals and a bit less on the ongoing concerns about trade," said Christine Scalley, U.S. equity strategist at J.P. Morgan Private Bank.

While uncertainty over U.S. trade policy has hung over the market for months, tensions intensified in recent weeks. The S&P 500 posted two consecutive weekly declines heading into this week.

The U.S. was preparing to impose a 25 percent tariff on $34 billion worth of Chinese imports starting Thursday night. And China is expected to strike back with tariffs on a similar amount of U.S. exports.

President Donald Trump's administration has said it won't target an additional $16 billion worth of Chinese goods until it gathers further public comments. It's also identifying an additional $200 billion in Chinese goods for 10 percent tariffs, which could take effect if Beijing retaliates.

On Thursday in China, Commerce Ministry spokesman Gao Feng hit back at "threats and blackmail" ahead of the planned U.S. tariff increase. He added that China would be forced to fight back to protect its own interests.

The big question remains: How far will the two countries go in their dispute?

"The market tomorrow morning will be very focused on did the U.S. proceed -- which at this point it feels like they're going to -- and was there any reaction overseas from China," Scalley said.

Some encouraging U.S. economic data also gave traders something to cheer about. The Institute for Supply Management issued data indicating that U.S. service firms expanded at a surprisingly strong pace in June. Separately, payroll processor ADP said private U.S. employers added 177,000 jobs in June. The Labor Department is due to release its June jobs report today.

Technology stocks, which lead all other sectors in the S&P 500 with an 11.3 percent gain this year, led the rally. Qorvo climbed 5.7 percent to $81.82.

Several health care sector stocks also helped lift the market. Celgene gained 2.2 percent to $80.39.

Benchmark U.S. crude oil dropped $1.20, or 1.6 percent, to settle at $72.94 per barrel in New York. Brent crude, used to price international oils, slid 85 cents, or 1.1 percent, to close at $77.39 per barrel in London.

The decline in oil prices weighed on some energy stocks. Marathon Oil dropped 2.7 percent to $20.70.

Bond prices were little changed. The yield on the 10-year Treasury held at 2.83 percent.

The dollar strengthened to 110.68 yen from 110.49 yen on Wednesday. The euro rose to $1.1680 from $1.1667.

Gold added $5.30 to $1,258.80 an ounce. Silver gained 5 cents to $16.10 an ounce. Copper fell 9 cents, or 3.1 percent, to $2.83 a pound.

Business on 07/06/2018

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