U.S. stocks head north; market coming off of worst week in two years
NEW YORK — U.S. stocks are posting solid gains early Monday as energy companies recover some of their recent losses. Banks, retailers and technology companies also climb higher. Stocks rose Friday but still wound up with their worst week in two years following several days of turbulence. Europe markets are also rallying.
KEEPING SCORE: The Standard & Poor’s 500 index gained 27 points, or 1 percent, to 2,646 as of 9:50 a.m. Eastern time. The Dow Jones industrial average rose 278 points, or 1.2 percent, to 24,468. The Nasdaq composite climbed 75 points, or 1.1 percent, to 6,950. The Russell 2000 index of smaller-company stocks added 2 points, or 0.2 percent, to 1,480.
It took just nine days for stocks to plunge 10 percent from their latest peak set January 26. That’s known on Wall Street as a market “correction.” According to LPL Financial, that’s the swiftest move from a record high to a correction for the S&P 500, the most widely used market benchmark. The index rose 1.5 percent Friday but still wound up with its worst weekly loss in more than two years.
DEFENSE DEAL: Defense contractor General Dynamics will spend almost $7 billion to acquire internet technology company CSRA. The Trump administration has been pushing defense spending aggressively higher. CSRA climbed $9.69, or 31.4 percent, to $40.51 Monday. General Dynamics dipped $2.57, or 1.2 percent, to $209.53.
EARLY GAINERS: Retailers, apparel makers and other companies that focus on consumers made some of the largest gains. They held up relatively well during the steep downturn over the last two weeks. On Monday General Motors picked up 88 cents, or 2.1 percent, to $42.34 while McDonald’s gained $2.32, or 1.4 percent, to $163.13. Netflix climbed $6.32, or 2.5 percent, to $255.79, and it’s up 33 percent since the beginning of the year.
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Source:: The Mercury News – Business