Stocks Move Higher, Sending Dow Industrials Closer To 22,000

U.S. stocks are rising Tuesday, sending the Dow Jones industrial average closer to 22,000 points. Banks are posting some of the biggest gains, and payment processors and other technology companies are also rising. Under Armour is tumbling after the athletic apparel company lowered its revenue projections and said it will cut jobs and expenses. Oil prices turned lower after a long rally.

KEEPING SCORE: The Standard & Poor’s 500 index rose 6 points, or 0.2 percent, to 2,476 as of 1:50 p.m. Eastern time. The Dow Jones industrial average climbed 86 points, or 0.4 percent, to 21,977. The Nasdaq composite added 12 points, or 0.2 percent, to 6,360. The Russell 2000 index of smaller-company stocks remained at 1,425.

GETTING PAID: Citigroup picked up 92 cents, or 1.3 percent, to $69.37 and Goldman Sachs added $2.11 to $227.44.

Among technology companies, payments processor Visa rose $1.35, or 1.4 percent, to $100.916. Mastercard, which processes debit and credit card payments, rose $1.85, or 1.4 percent, to $129.65.

Intel rose as its deal for Mobileye moved closer to completion following approval from regulators in South Korea. Mobileye makes software that processes information from cameras and other car sensors to decide where an autonomous car should steer, and Intel agreed to buy it for $15 billion in March. Intel gained 78 cents, or 2.2 percent, to $36.25 and Mobileye rose 17 cents to $63.47.

Xerox reported solid quarterly results and jumped $1.38, or 4.5 percent, to $32.05.

SMOOTH SEAS: Cruise line operator Royal Caribbean beat analysts’ forecasts and raised its estimates for the year. It climbed $4.43, or 3.9 percent, to $117.50 and competitor Carnival also advanced 71 cents, or 1.1 percent, to $67.49.

SPRINT SPRINGS: Sprint climbed Tuesday after it said it’s open to combining with another phone company or a cable company. CEO Marcelo Claure said Sprint can survive on its own, but it will be in a better position if it strikes the right deal. The fourth-larger U.S. wireless carrier also reported its first quarterly profit in three years as it cut cost and added wireless subscribers.

Sprint was on pace for its biggest gain of the year as it rose 81 cents, or 10.1 percent, to $8.79. Elsewhere, T-Mobile USA climbed $1.29, or 2.1 percent, to $62.95 and Verizon Communications gained 84 cents, or 1.7 percent, to $49.24.

POWERING DOWN: Utility company Scana continued to rise. On Monday the company said it plans to end construction of two nuclear reactors that customers have already paid billions to build. It will brief regulators Tuesday on its plans. Scana’s South Carolina Electric & Gas unit and state-owned Santee Cooper say they have already spent $10 billion on the project and that it could cost $20 billion to finish. The project has been shrouded in doubt since Westinghouse, the primary contractor, filed for bankruptcy protection earlier this year.

Scana rose $2.71, or 4.2 percent, to $67.08 following a 5 percent gain on Monday.

SLIMMING DOWN: Under Armour cut its annual revenue forecast as sharp discounts continue to affect its business in North America. The Baltimore company said it will eliminate 280 jobs and is aiming to reduce $110 million to $130 million in annual spending through a restructuring plan. Under Armour sank $1.71, or 8.6 percent, to $18.31, and it’s down by more than half over the last 12 months. Rival Nike added 50 cents to $59.55.

STUCK IN NEUTRAL: Engine maker Cummins reported a weaker-than-expected profit due to higher warranty costs, and its stock lost $11.14, or 6.6 percent, to $156.76. Power management company Eaton disclosed a smaller-than-expected profit and fell $5.38, or 6.9 percent, to $72.87.

On Monday Cummins and Eaton started a joint venture that will make automated transmissions for heavy-duty and medium-duty commercial vehicles. They announced that plan in April.

AUTO FAILS: General Motors and Ford declined as auto makers were expected to report their seventh consecutive month of lower sales. GM’s sales fell 15 percent in July and Ford’s decreased 7.5 percent. U.S. new vehicle sales reached a record of 17.55 million in 2016, and Ford’s U.S. sales chief Mark LaNeve said at their current pace, sales will be around 17 million this year.

GM fell $1.30, or 3.6 percent, to $34.67 and Ford declined 27 cents, or 2.4 percent, to $10.95.

ENERGY: Oil prices plunged after a six-day rally. U.S. crude shed $1.40, or 2.8 percent, to $48.77 a barrel in New York. Brent crude, the international standard, dropped $1.37, or 2.6 percent, to $51.3 a barrel in London.

BONDS: Bond prices moved higher. The yield on the 10-year Treasury note dipped to 2.26 percent from 2.30 percent.

METALS: Gold added $6 to $1,279.40 an ounce. Silver lost 2 cents to $16.76 an ounce. Copper dipped 1 cent to $2.88 a pound.

CURRENCIES: The dollar dipped to 110.21 yen from 110.24 yen. The euro slid to $1.1823 from $1.1831.

OVERSEAS: The DAX in Germany DAX rose 1.1 percent. Britain’s FTSE 100 and the French CAC 40 both rose 0.7 percent. Japan’s benchmark Nikkei 225 index added 0.3 percent while South Korea’s Kospi climbed 0.8 percent. In Hong Kong, the Hang Seng gained 0.8 percent.


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