Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Overnight Markets: US stocks jump to record highs on deal to end shutdown

Overnight Markets: US stocks jump to record highs on deal to end shutdown

Wall Street closed at record highs on Monday in the wake of a deal by US senators to end the federal government shutdown.

The Dow Jones Industrial Average added 143 points, or 0.55%, to 26,215, the S&P 500 rose 23 points, or 0.81%, to 2,833 and the Nasdaq Composite gained 72 points, or 0.98%, to 7,408.

Legislation to renew federal funding to the government cleared a procedural hurdle in the Senate and was expected soon to pass votes in the Senate and House of Representatives, allowing government to re-open through 8 February.

Telecoms and energy sectors surged more than 2%, which was offset by a 0.3% decline in materials and a more modest 0.1% decline in industrials.

Halliburton Co (HAL.N) climbed 6.40% after posting a much bigger-than-expected quarterly profit in the fourth quarter. General Electric (GE.N) was down 0.55% BofA-Merrill Lynch downgraded its stock.

Shares of Netflix Inc (NFLX.O) closed up 3.23% ahead of its quarterly results and added to gains in extended trading after its quarterly numbers were released.

The Nasdaq biotech index rose 3.15% to notch its best day since 21 June after a flurry of merger activity in the sector with French drugmaker Sanofi (SASY.PA) and US-based Celgene (CELG.O) splurging a combined total of more than $20 billion.

Shares in US haemophilia specialist Bioverativ (BIVV.O) soared 61.89% after Sanofi agreed to buy the company for $11.6 billion. Juno Therapeutics (JUNO.O) jumped 26.83% after Celgene agreed to buy the biotech for about $9 billion in cash.

In other M&A news, AIG (AIG.N) said it would buy reinsurer Validus Holdings (VR.N) for $5.56 billion, sending the target’s shares up 44.03%.

In Asia,, shares advanced on Tuesday in morning session after US senators struck a deal to end a three-day government shutdown.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% to a fresh record peak. Australian stocks climbed 0.7% and South Korea's KOSPI added 0.8%. Japan's Nikkei was 0.75% higher.

In Greater China, the Hang Seng Index added 0.94%, while on the Mainland, the Shanghai Composite Index was up 0.67%.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Play CEO Tapes: 'we're just a bunch of white dudes sitting here'

CEO Tapes: 'we're just a bunch of white dudes sitting here'

In our brand new series, eight CEOs discuss how the industry could do a better job for female fund managers.

Read More
Your Business: Cover Star Club

Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

Wealth Manager on Twitter