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The Dow Jones Industrial Average finished modestly higher Thursday, but a surge in crude-oil prices failed to offset a retreat in the technology sector, driving the broader markets lower. The Dow closed up 95 points, or 0.4%, at 25,241, powered by gains in shares of McDonald's Corp. , which advanced by 4.4%, contributing about 50 points to the price-weighted Dow as the fastfood chain announced plans to cut jobs. The Dow closed at its highest level since March 9, according to FactSet data. The S&P 500 index fell less than 0.1% at 2,770, with the slide in technology sector, as measured by the exchange-traded Technology Select Sector SPDR ETF , down 1%, weighing on the broad-market benchmark. Meanwhile, the Nasdaq Composite Index shed 0.7% to 7,635, ending a four-session win streak for the technology-and-internet-heavy benchmark. Losses for the S&P 500 also halted a similar string of gains. A rise in West Texas Intermediate crude oil , which finished up 1.9% at $65.95, helped to push the exchange-traded Energy Select Sector SPDR ETF up 1.6%.
Nasdaq Composite Index closes 0.7% lower
S&P 500 closes down 0.1%
Dow Jones Industrial Average closes up 0.4%
U.S. stocks close mostly lower on tech weakness, but bank strength supports Dow
McDonald's Corp.'s stock shot up 4.3% in afternoon trade, boosted by an upgrade at Kalinowski Equity Research, to account for the bulk of the Dow Jones Industrial Average's rise, while the S&P 500 and Nasdaq Composite fell. The price gain of the fast-food giant's stock of $7.01 was adding about 48 points to the Dow, which was last up 58 points. McDonald's shares' percentage gain paced the Dow gainers. In second place was Chevron Corp.'s stock , which rose 2.8%, with the $3.41 price gain added 23 points to the Dow. The biggest decliner in the blue-chip barometer was Intel Corp.'s stock , which slumped 2.0%, to shave about 8 points off the Dow.
McDonald's Corp. was upgraded to buy from neutral at Kalinowski Equity Research based on an improved outlook for U.S. same-store sales. McDonald's price target is $191. Kalinowski conducted proprietary channel checks and thinks the fresh beef burgers are driving better trends. McDonald's is now Kalinowski's top restaurant pick, replacing Wendy's Co. . "This should lead to better-tasting Quarter Pounders, Double Quarter Pounders, Signature Crafted burgers, and any other burger for which McDonald's U.S. uses quarter-pound burger patties," Kalinowski wrote. "In addition, there is a marketing perspective here: even if our subjective take is wrong, we still believe that the communication of fresh beef for quarter-pound burger patties will be viewed positively by the general public, as there's a perception that fresh beef is better than frozen beef." Moreover, fresh beef cooks between 20 seconds to 40 seconds faster. McDonald's shares are up 3.8% in Thursday trading, but down 2.2% for the year to date. The Dow Jones Industrial Average is up 1.7% for the period.
Technically speaking, the U.S. benchmarks’ unseasonal, but persistent, bull trend continues to strengthen. On a headline basis, the Dow industrials have belatedly broken out — opening the path to an intermediate-term target roughly 1,000 points above current levels — while the Nasdaq Composite is concurrently vying for its fifth straight close atop the 20-day volatility bands, a sign of statistically unusual strength.
The Dow Jones Industrial Average Thursday morning was hanging on to a modest advance and off its best levels of early trade as technology and internet stocks that had propelled the broader market pulled back. The Dow was up 93 points, or 0.4%, at 25,243, with returns for the blue-chip benchmark buoyed primarily by a climb in shares of McDonald's Corp. , up 3.3%, or $5.31 and Home Depot Inc. , rising 1.7% or $3.35 in morning action. Those gains were combining to contribute a roughly 60-point headwind to the price-weighted Dow. A $1 move in any one of the Dow's 30 components translates to a 6.89-point swing. Meanwhile, the rest of the market was being weighed by the pause in what has been a sharp tech-powered rally, with the S&P 500 index off 0.2% at 2,768 and the Nasdaq Composite Index down 0.8% at 7,629.
The Nasdaq Composite Index saw its losses accelerate in Thursday morning trade, with the decline for the technology-heavy gauge threatening to end a four-session string of advances. The Nasdaq , most recently, was down 0.3% at 7,664. However, the broader markets, including the Dow Jones Industrial Average and the S&P 500 index were still clinging to slight opening gains. The Dow was up 0.4% at 25,255, while the S&P 500 was trading little changed at 2,773, dragged lower by declines in tech, as represented by the exchange-traded Technology Select Sector SPDR ETF . Technology and internet stocks have thus far helped Wall Street equities to mount a resurgence to multiweek highs in recent trade. That tech-and-internet focused rally helped the Nasdaq, which has become a proxy for that complex, to record three straight all-time closing highs.
McDonald's Corp. plans to cut jobs as part of an effort to shrink the corporate structure, according to a report from The Wall Street Journal. The number of layoffs was not disclosed, but further details will be provided at a June 12 town hall. The goal of the restructuring is to better support franchisees, the Journal reports, while also making the company more "nimble and competitive." The news comes just days after the June 5 opening of McDonald's new Chicago headquarters. The facility will house about 2,000 workers along with a Hamburger University training facility. McDonald's shares are up 2.3% in Thursday trading, but down 3.5% for 2018 so far. The Dow Jones Industrial Average is up 1.7% for the year to date.
S&P 500, Nasdaq aim for 5th straight gain
U.S. stocks opened modestly higher on Thursday, driven by gains in the financial and energy sectors. The S&P 500 index opened 4 points, or 0.1% higher to 2,775. The Dow Jones Industrial Average advanced 85 points, or 0.3%, to 25,230. The tech-heavy index was up 5 points, or 0.1% to 7,694, scoring an intraday high shortly after the open. Among the best performers on the S&P 500 were stocks of large banks. Citigroup Inc was up 0.8%, while JPMorgan rose 0.9%.
Nasdaq rises less than 0.1%
Dow up 0.3%, S&P 500 gains 0.1% at the open
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Russell 2000 Index | |||
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Dow Jones U.S. Total Stock Market Index | |||
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S&P 400 Mid Cap Index | |||
NYSE Composite Index | |||
Barron's 400 Index | |||
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BOVESPA Index | |||
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IPC Indice de Precios Y Cotizaciones |
Company | Last | Chg | Chg % |
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McDonald's Corp. | |||
Chevron Corp. | |||
Procter & Gamble Co. | |||
Travelers Cos. Inc. | |||
Home Depot Inc. | |||
Verizon Communications Inc. | |||
General Electric Co. | |||
Exxon Mobil Corp. | |||
United Technologies Corp. | |||
3M Co. | |||
Walt Disney Co. | |||
Goldman Sachs Group Inc. | |||
American Express Co. | |||
Walmart Inc. | |||
International Business Machines Corp. | |||
Johnson & Johnson | |||
JPMorgan Chase & Co. | |||
Pfizer Inc. | |||
UnitedHealth Group Inc. | |||
Merck & Co. Inc. | |||
Nike Inc. Cl B | |||
Coca-Cola Co. | |||
Caterpillar Inc. | |||
Apple Inc. | |||
Boeing Co. | |||
DowDuPont Inc. | |||
Cisco Systems Inc. | |||
Microsoft Corp. | |||
VISA Inc. Cl A | |||
Intel Corp. |