United States stocks-Wall Street climbs on Intel, healthcare boost

Posted January 27, 2018

A key world stock market index extended gains on Friday, putting it on track for its longest weekly winning streak since 1999, while Intel's results boosted stocks on Wall Street and the USA dollar remained weak after an official's recent comments.

Intel's shares surged about 9 percent to their highest in nearly two decades, after results indicated that the chipmaker's shift to higher-margin data-centre business was gaining pace.

AbbVie (N:) rose 8.9 percent after reporting upbeat profit on strong sales for its blockbuster drug Humira.

Stocks finished mostly higher, as the Dow outperformed the other major benchmarks to close at another new record high, while the S&P 500 also eked out a new record after drifting near its flatline for much of the day. Fourth-quarter gross domestic product increased at a 2.6 percent annual rate, a report showed. S. economic growth unexpectedly slowed in the fourth quarter as strong consumer spending resulted in a surge in imports.

"While we remain bullish for the year as a whole, this is beginning to look a little too frothy for our liking", said James Barty, a Bank of America Merrill Lynch strategist, in a note on Thursday.

Markets have moved this week on comments from top USA officials at the World Economic Forum in Davos. The greenback clawed back some of the losses after President Donald Trump said he ultimately wants the dollar to be strong.

In 1.15pm trading in NY, the Dow Jones Industrial Average climbed 0.6 percent, while the Nasdaq Composite Index rose 0.2 percent.

The Nasdaq composite fell 3 points, or 0.1 percent, to 7,411.

Stocks moved to the upside early in the session amid a positive reaction to the latest batch of earnings news, with results from most big-name companies topping estimates. The S&P 500 added 32 points, or 1.2%, to finish at 2,872 after a weekly gain of 2.2%, while the Nasdaq Composite climbed 94 points, or 1.3%, to 7,505; it was up 2.3% for the week.

The dollar was on track for its worst week since May after comments from senior USA officials this week backing a weak currency.

Starbucks dropped 4.23 per cent after it warned 2018 global cafe sales growth would be at the low end of its forecast.

Declining issues outnumbered advancers on the NYSE by 1,449 to 1,301.

Microsoft rose 1.2 percent and Johnson & Johnson climbed 1.1 percent Thursday.