Stock rally powers on: Dow, S&P 500, Nasdaq hit new records

U.S. stocks are rising for the sixth day in a row Friday as major indexes continue to set records.

The largest gains are going to industries that have been mostly left out of the post-election rally, including health care companies and makers of household goods. 

“What we’re seeing today is investors who are fearful they’ll be left behind,” said Kate Warne, investment strategist for Edward Jones. “So it may not be surprising that they’re buying less aggressive stocks and sectors.”

The Dow Jones industrial average climbed 142.04 points, or 0.7%, to a record close of 19,756.85. The Standard & Poor’s 500 index rose 13.34 points, or 0.6%, to close at a record 2259.53. The Nasdaq composite gained 27.14 points, or 0.5%, to an all-time closing high of 5444.50. The Russell 2000 index of smaller-company stocks edged up 1.71 points, or 0.1%, to 1,388.07.

The S&P 500’s six-day winning streak is its longest in two and a half years. The Dow is riding a 5-day winning streak and jumped 3.1% for the week. 

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U.S. government bond prices slipped again. The yield on the 10-year Treasury note inched up to 2.47%, its highest in about 18 months, up from 2.41% late Thursday. That yield is used to set interest rates on many kinds of loans including mortgages.

Next week the Federal Reserve will meet for the last time in 2016. Investors expect the central bank to raise its key interest rate, and Wall Street will look for clues about the Fed’s plans for future interest rates.

“They’re hoping that the Fed continues with the current message: that they’ll be patient, that they’re watching the economy, and that they see the risks as balanced,” said Warne.

Benchmark U.S. crude oil jumped 1.3% to $51.50 a barrel in New York. 

Those stocks, especially biotechnology companies, were hit hard this week after President-elect Donald Trump said he wants to reduce drug prices. Bristol-Myers Squibb gained 3.3% and Botox maker Allergan rose 2%. 

Technology stocks rose for the sixth consecutive day and completed their best week in a year. They’ve slightly lagged the market since Election Day. Chipmaker Broadcom rose 4.9% after reporting earnings that were far above expectations. The company also doubled its quarterly dividend. Apple gained 1.6% and Google parent Alphabet reversed its post-election losses and picked up 1.8%. 

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Global stocks were mostly higher as investors remained buoyed by the European Central Bank’s decision to extend its bond-buying economic stimulus program. South Korea’s benchmark slipped as lawmakers voted to impeach President Park Geun-hye over a corruption scandal.

The European Central on Thursday extended its bond-buying economic stimulus program, known as “quantitative easing,” as investors expected. It pushed out the earliest end date for its bond-buying program to the end of next year, from March previous. However, starting in March it will begin spending less on bonds per month. The extension adds $579 billion, seen as a hedge against political uncertainties such as Italy’s recent referendum and elections next year in France, Germany and the Netherlands. China’s slowdown, U.S. rate hikes and the impact of President-elect Donald Trump on growth and global trade also loom large.

The ECB’s policy change looks like a typical compromise” between those in favor of extending the stimulus and those who wanted to start phasing it out, said CMC’s chief market strategist, Ric Spooner. “The bottom line for markets is that (the stimulus) will continue at a substantial rate for another 12 months with the possibility of being increased if conditions deteriorate.”

Britain’s FTSE 100 rose 0.3% and France’s CAC 40 was up 0.6%. Germany’s DAX rose 0.2%

South Korean lawmakers voted to impeach Park over a corruption scandal that drew millions of demonstrators into the streets demanding she step down. Prime Minister Hwang Kyo-ahn will assume leadership until the country’s Constitutional Court rules on whether Park must go for good. Park has denied allegations she colluded with a confidante who extorted companies and manipulated state affairs. South Korea’s KOSPI fell 0.3%.

Japan’s Nikkei 225 gained 1.2%, as the yen weakened against the dollar. The Shanghai Composite Index rose 0.5%  but Hong Kong’s Hang Seng index fell 0.4%.