US close: Stocks post gains despite healthcare weakness
US equity markets ended in the black on Wednesday, with all three major indices registering their biggest gains since the election despite weakness in the healthcare sector.
The Dow Jones Industrial Average rose 1.6%, the S&P 500 gained 1.3% and the Nasdaq climbed 1.1%.
Sentiment was boosted by a strong showing in Europe, where stocks advanced amid hopes of a bailout for Italy’s struggling banks, with Banca Monte dei Paschi di Siena higher following a report that Italy could ask for a €15bn European Stability Mechanism loan to help it and other beleaguered banks.
More broadly, investors were looking ahead to Thursday’s rate announcement by the European Central Bank amid rising expectations that it will extend its bond-purchasing programme, particularly following the outcome of the Italian referendum.
Market participants also had their eyes on next week’s Federal Reserve policy announcement, with a rate hike now fully priced in.
In commodity markets, oil prices settled lower after the US Energy Information Administration said domestic crude supplies fell by 2.4m barrels in the week ended 2 December. Brent crude was down 1.7% to $53.03 per barrel, while West Texas Intermediate was 2.1% lower at $49.88.
IG’s Joshua Mahony said: “The bullish sentiment evident since OPEC’s agreement to limit supply is perhaps finally coming under some scrutiny as we approach this weekend’s meeting between OPEC and non-OPEC member approaches. The whole deal could quite easily come tumbling down should the likes of Russia fail to agree to substantial cuts and while it is not likely, the risk is pushing investors to begin taking profits.”
Drug companies took a beating following comments from President-elect Donald Trump, who said in an interview with Time magazine that he would bring down drug prices.
Pfizer fell after the UK’s competition watchdog fined the company $107m for overcharging the NHS for an epilepsy drug.
Elsewhere, the maker of Jack Daniel’s whiskey Brown-Forman slipped after cutting its revenue outlook as sales fell.
Handbag retailer Vera Bradley slumped as it also lowered its full year outlook after comparable sales fell 5.7% in the third quarter.
S&P 500 - Risers
Western Digital Corp. (WDC) $69.15 +8.30%
Micron Technology Inc. (MU) $20.44 +7.27%
Borg Warner Inc. (BWA) $41.60 +6.23%
Lowe's Companies Inc. (LOW) $76.40 +5.44%
Autodesk Inc. (ADSK) $80.34 +5.27%
Kohls Corp. (KSS) $57.82 +5.13%
Marathon Petroleum Corporation (MPC) $49.65 +5.12%
PACCAR Inc. (PCAR) $67.63 +4.97%
Nordstrom Inc. (JWN) $60.09 +4.94%
Goodyear Tire & Rubber Co. (GT) $31.46 +4.94%
S&P 500 - Fallers
Universal Health Services Inc. (UHS) $111.36 -11.88%
Endo International Plc (ENDP) $15.09 -4.85%
Mallinckrodt Plc Ordinary Shares (MNK) $51.36 -4.39%
Celgene Corp. (CELG) $112.66 -4.03%
Mylan Inc. (MYL) $34.50 -3.79%
Vertex Pharmaceuticals Inc. (VRTX) $75.32 -3.58%
Illumina Inc. (ILMN) $122.01 -3.47%
Amerisource Bergen Corp. (ABC) $76.38 -3.16%
Tenet Healthcare Corp. (THC) $14.96 -3.05%
Freeport-McMoRan Inc (FCX) $15.43 -2.89%
Dow Jones I.A - Risers
Nike Inc. (NKE) $52.10 +3.03%
Home Depot Inc. (HD) $132.46 +2.89%
Visa Inc. (V) $79.31 +2.85%
International Business Machines Corp. (IBM) $164.79 +2.77%
American Express Co. (AXP) $74.29 +2.74%
3M Co. (MMM) $176.05 +2.47%
Microsoft Corp. (MSFT) $61.37 +2.37%
Intel Corp. (INTC) $35.50 +2.25%
Caterpillar Inc. (CAT) $97.33 +2.22%
Cisco Systems Inc. (CSCO) $29.95 +2.11%
Dow Jones I.A - Fallers
Pfizer Inc. (PFE) $31.19 -1.17%
Johnson & Johnson (JNJ) $111.10 -0.86%
Merck & Co. Inc. (MRK) $60.06 -0.36%
Nasdaq 100 - Risers
Western Digital Corp. (WDC) $69.15 +8.30%
Micron Technology Inc. (MU) $20.44 +7.27%
Autodesk Inc. (ADSK) $80.34 +5.27%
PACCAR Inc. (PCAR) $67.63 +4.97%
American Airlines Group (AAL) $48.65 +4.78%
JD.com, Inc. (JD) $26.98 +4.45%
T-Mobile Us, Inc. (TMUS) $58.39 +4.29%
Viacom Inc. Class B (VIAB) $38.01 +4.02%
Tesla Motors Inc (TSLA) $193.15 +3.93%
Kraft Heinz Co. (KHC) $82.95 +3.74%
Nasdaq 100 - Fallers
Incyte Corp. (INCY) $101.96 -4.90%
Shire Plc Ads (SHPG) $164.80 -4.61%
Celgene Corp. (CELG) $112.66 -4.03%
Mylan Inc. (MYL) $34.50 -3.79%
Vertex Pharmaceuticals Inc. (VRTX) $75.32 -3.58%
Illumina Inc. (ILMN) $122.01 -3.47%
Amgen Inc. (AMGN) $141.19 -2.70%
Biomarin Pharmaceutical Inc. (BMRN) $81.02 -2.37%
Biogen Inc (BIIB) $285.30 -2.01%
Regeneron Pharmaceuticals Inc. (REGN) $362.01 -1.88%