Banks and other financial companies led U.S. stocks mostly higher in afternoon trading Thursday, nudging the Dow Jones industrial average on course to beat its all-time closing from August. Consumer-focused companies, utilities and technology stocks were among the biggest decliners. The market was coming off a big rally following the election of Donald Trump as the next U.S. president.
KEEPING SCORE: The Dow climbed 190 points, or 1 percent, to 18,780 as of 1:23 p.m. Eastern time. The average was up more than 144 points from its last record-high close on August 15. The Standard & Poor’s 500 index added 6 points, or 0.3 percent, to 2,169. The tech-heavy Nasdaq composite index lost 41 points, or 0.8 percent, to 5,209.
TRUMP BOUNCE: The upcoming Trump presidency, which will commence on Jan. 20, triggered a strong rally on Wednesday that extended somewhat into trading Thursday. Traders were focusing on Trump’s promises to boost U.S. economic growth through infrastructure spending and by cutting red tape, rather than uncertainties such as what he might do with trade agreements. Before the election, markets had been worried about a Trump presidency because his campaign promises carried few policy details, making him an unknown quantity compared with rival Hillary Clinton.
THE QUOTE: “We had a gangbuster day yesterday; call it a Trump rally,” said Doug Cote, chief market strategist for Voya Investment Management. “Today we’re having a little breather, a little rest, but the key thing that will also keep the market going is the S&P 500 corporate earnings for the third quarter are positive for the first time in six quarters.”
BANKS SURGE: Banks and other financial companies got a boost amid speculation that a Trump presidency could result in higher interest rates and less government regulation. JPMorgan Chase climbed $2.78, or 3.8 percent, to $76.03. Goldman Sachs rose $6.75, or 3.5 percent, to $199.38. Wells Fargo gained $3.01, or 6.3 percent, to $51, while Discover Financial Services added $3.03, or 5 percent, to $63.32.