Benchmarks finished in the green on Tuesday following gains in the technology and healthcare sectors. Increase in Apple’s shares boosted the broader tech sector, while healthcare stocks rallied upward after Medtronic posted strong quarterly performance and reiterated its fiscal 2018 revenue and EPS guidance. All the three key U.S. indexes reached all-time highs on Tuesday, with the S&P 500 moving above the 2,600 level in intra-day trade.
The Dow Jones Industrial Average (DJIA) increased 0.7%, or 160.50 points, to close at 23,590.83. The S&P 500 Index (INX) rose 0.7% to close at 2,599.03. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,862.48, gaining 1.1%. A total of 6.2 billion shares were traded on Tuesday, lower than the last 20-session average of 6.8 billion shares. Advancers outnumbered decliners on the NYSE by a 2.10-to-1 ratio. On Nasdaq, a 1.92-to-1 ratio favored advancing issues. The CBOE VIX decreased 9.4% to close at 9.65.
Technology, Healthcare Boost Markets
Shares of Apple Inc. AAPL increased 1.9% yesterday while other tech giants like Facebook, Inc. FBand Alphabet Inc. GOOGL gained 1.8% and 1.5%, respectively. Gains in major tech companies had a broad-based positive impact on Technology Select Sector SPDR (XLK), which increased 1.1%, emerging as the best performer among key S&P 500 sectors. The technology sector reached its best levels since 2000.
Shares of Medtronic plc MDT advanced 4.8% after the company reported fiscal second-quarter adjusted earnings per share (EPS) of $1.07, beating the Zacks Consensus Estimate $0.99. Moreover, the company maintains its full-year fiscal 2018 revenue growth projection in the range of 4-5% at CER.Also, it still expects its adjusted earnings per share growth to be in the range of 9-10% at CER. ( Read More )
Medtronic was the best performing stock for the healthcare sector. The Health Care Select Sector SPDR (XLV) rose 0.9% and was the second biggest gaining sector among the S&P 500. Some of its key holdings, including UnitedHealth Group Incorporated UNH and Pfizer Inc. PFE advanced 1.1% and 0.5%, respectively. Both the healthcare companies have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Following gains in the technology and healthcare stocks, all key indexes moved northward, with the small-cap index, Russell 2000 advanced 1% on Tuesday to close at 1,518.89, settling at its best levels ever.
Existing Home Sales Data Upbeat
In economic news, existing homes sales rose 2% in October from September to a seasonally adjusted rate of 5.48 million, according to the National Association of Realtors. Sales of previously owned homes also came higher than the consensus estimate of 5.41 million. Following a steady increase last month, existing home sales rose at its best pace since June.[“Source-nasdaq”]