U.S. stocks ended higher after a choppy day on Wednesday as energy and technology gains countered a drop in healthcare stocks after President-elect Donald Trump said pharmaceutical companies were “getting away with murder” by charging high prices.
The Nasdaq ended the day with another record closing high after falling as much as 0.5 per cent after Trump’s first formal news conference since the Nov. 8 election.
The S&P 500 healthcare index ended the session down 1 per cent after falling as much as 1.9 per cent earlier in the day and the Nasdaq biotechnology index sank 2.96 per cent, ending a six-day winning streak for both indexes.
“When somebody that high profile says something that negative, people do not want to invest in it. They view the sector as uninvestible, and withdraw their money,” Brad Loncar, manager of the Loncar Cancer Immunotherapy ETF.
However, the sector’s pain eased as the session wore on as money managers noted that Trump gave no new specific details on his healthcare proposals, according to Michael Scanlon, portfolio manager at Manulife Asset Management in Boston.
He cited the beginning of fourth-quarter earnings season on Friday and Trump’s inauguration as President on Jan. 20 as reasons for investor caution.
“Portfolio managers have every reason in the world to sit on their hands,” said Scanlon. “You put those two factors together and I don’t think you’re going to see much movement in the market until maybe we get some fireworks on Friday with earnings.”
The Dow Jones Industrial Average closed up 98.75 points, or 0.5 per cent, to 19,954.28, the S&P 500 gained 6.42 points, or 0.28 per cent, to 2,275.32 and the Nasdaq Composite added 11.83 points, or 0.21 per cent, to 5,563.65.
Eight of the 11 major S&P sectors ended the day higher. Energy stocks, ended 1.2 per cent higher as crude oil prices rose. The S&P’s technology index ended up 0.7 per cent, boosted most by Microsoft Corp , Facebook Inc and Apple Inc.
The biggest drag on the S&P’s healthcare sector was Bristol-Meyers Squibb’s with a 5.3 per cent decline, after news that Merck & Co. leapfrogged its rivals in the race to combine immunotherapy with other drugs as a treatment for lung cancer. The next-biggest weights on the sector included Johnson & Johnson, with a 1.2 per cent drop and Abbvie with a 3.6 per cent decline.
Advancing issues outnumbered declining ones on the NYSE by a 2.20-to-1 ratio; on Nasdaq, a 1.22-to-1 ratio favored advancers.
The S&P 500 posted 20 new 52-week highs and two new lows; the Nasdaq Composite recorded 99 new highs and 18 new lows.
About 7.2 billion shares changed hands on U.S. exchanges on Wednesday compared with the 6.57 billion average for the last 20 sessions.
TSX ends higher with financials, industrials
Canada’s main stock index ended higher on Wednesday, boosted by gains for big banks and insurers, base metal miners and industrial stocks, while energy stocks were flat despite big oil price gains.
The Toronto Stock Exchange’s S&P/TSX composite index unofficially closed up 65.26 points, or 0.42 per cent, at 15,491.54.
Department store operator Hudson’s Bay Co fell 7.1 per cent, extending a sharp fall to a record low in the prior session as its poor holiday season sales and lower outlook led several banks to slash price targets on the stock.Report Typo/Error