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NEW YORK -- U.S. stocks finished broadly higher for the third day in a row Monday. Media, retail and technology companies rose, and Warren Buffett's Berkshire Hathaway led gains for the financial sector.

Most sectors climbed as companies including Facebook and Netflix recovered some of the losses they sustained recently. Investors continued to focus on companies' quarterly results instead of the escalating trade threats the U.S. and China made last week.

The S&P 500 index rose 10.05 points, or 0.4 percent, to 2,850.40, its highest close since Jan. 29. The benchmark index has risen for five weeks in a row, its longest winning streak in 2018.

The Dow Jones industrial average gained 39.60 points, or 0.2 percent, to 25,502.18. The Nasdaq composite added 47.66 points, or 0.6 percent, to 7,859.68. The Russell 2000 index of smaller-company stocks picked up 10.94 points, or 0.7 percent, to 1,684.31.

Company profits have rocketed higher this year thanks to the corporate tax cut and continued economic growth. But in the first quarter investors didn't always react to that growth because they were worried about the United States' numerous trade disputes. Julian Emanuel, chief equity and derivative strategist for BTIG, said that's starting to change.

"The skepticism that we had a quarter ago seems, rightly, to be falling by the wayside," he said.

Results for Berkshire Hathaway were stronger than analysts expected, and the company's Class B shares climbed 2.9 percent to $206.06.

Construction and technical services company Jacobs Engineering jumped 7.8 percent to $72.31 after it gave a strong forecast for its next fiscal year.

Tyson Foods gained 3.3 percent to $59.64. The poultry and pork processor cut its profit forecast last week in part because of uncertainty surrounding trade policy and rising freight costs. Its stock is down 26 percent this year.

Consumer products company Newell Brands dropped 14.3 percent to $22.76. The company said the liquidation of Toys R Us hurt its baby products business.

The company also said the combination of U.S. tariffs on goods from China and tariffs imposed by the European Union and Canada after the U.S. taxes on imported steel and aluminum could cost it as much as $100 million a year.

The S&P 500 is getting close to its most recent closing high of 2,872, which was set on Jan. 26. Emanuel said the index might be at 3,000 now, about 5 percent higher than it was Monday, if not for the ongoing trade disputes. He said the S&P could reach that mark if the trade disputes end, but added that that trading could become volatile this fall if there isn't progress.

"There is a hope and there is an expectation ... that you are going to favorably resolve the trade issues," he said.

Rite Aid plunged 9.8 percent to $1.66 after it forecast a bigger loss for the year because generic-drug pricing isn't shaping up the way it expected.

Later this week, shareholders will vote on the proposed sale of Rite Aid to the Albertsons grocery store chain. The owner of Safeway agreed to buy Rite Aid in February, but two shareholder advisory firms and one major Rite Aid shareholder opposed the deal.

PepsiCo said Indra Nooyi will step down as its CEO in October after 12 years leading the company. Ramon Laguarta, Pepsi's head of corporate strategy, will become its next CEO. The stock rose 0.9 percent to $117.38.

Oil futures gave up most of an early gain, but still finished higher. Benchmark U.S. crude rose 0.8 percent to $69.01 a barrel in New York. Brent crude, used to price international oils, rose 0.7 percent to $73.75 a barrel in London.

Business on 08/07/2018

Print Headline: Berkshire results help lift stocks

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