Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Stocks - Dow Tops 27,000 as UnitedHealth Soars

Published 07/11/2019, 03:47 PM
Updated 07/11/2019, 05:30 PM
© Reuters.
US500
-
DJI
-
BA
-
GS
-
MRK
-
AAPL
-
AMZN
-
CI
-
PFE
-
ELV
-
JNJ
-
RRC
-
UNH
-
IRM
-
IXIC
-
US10YT=X
-
META
-

Investing.com – The Dow hit a new high as it topped 27,000 for the first time on Thursday thanks to a huge gain for health insurance giant UnitedHealth Group and sizable for gains for Boeing (NYSE:BA) and Goldman Sachs (NYSE:GS).

But stocks overall were mixed. While the Dow industrials finished up 0.85%, the S&P 500 was up just 0.23%. The NASDAQ Composite fell 0.08%.

The Dow surged above 27,000 at about 11 a.m. It dipped in the afternoon and then shot back up to 27,088, a gain of 228 points.

The catalyst was news the Trump administration had abandoned a proposal to end rebates paid to middlemen who negotiate drug prices on behalf of health insurers. That was great news for UnitedHealth Group (NYSE:UNH), whose shares jumped 5.6% and added about 93 points to the Dow's gain by itself.

Health-insurance stocks overall rallied on the news, while drug companies fell back. Merck (NYSE:MRK), Pfizer (NYSE:PFE) and Johnson & Johnson (NYSE:JNJ) were the Dow losers on the day.

Boeing (NYSE:BA), up 1.9%, added 46 points to the Dow. Goldman Sachs (NYSE:GS), up 2.6%, added 24 points to the index.

The rest of the market was bedeviled by rising interest rates and weakness in telecom and tech stocks. Real estate and utilities stocks were lower as the 10-year Treasury yield rose to 2.12%. Telecommunications and communications stocks also fell.

Amazon.com (NASDAQ:AMZN) reached as high as $2,035.80, sporting a market cap of more than $1 trillion in the process. But Amazon's shares slid in the afternoon, ending down 0.81%, with its market cap at $999.6 billion. Amazon last ended with a $1-trillion market cap last fall.

Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) also fell.

At the end of the day, the Dow was up 16.1% on the year. The S&P is showing a 19.7% gain year to date. The Nasdaq has gained 23.5%. Most of the gains in recent weeks have resulted from the expectation of a Federal Reserve rate cut later this month and a lower tension levels on the U.S.-China trade dispute.

19.7%
19.7%

Winners and Losers in the S&P 500

Health insurers Cigna Corp (NYSE:CI), Anthem (NYSE:ANTM) and UnitedHealth Group (NYSE:UNH) were among the top-performing S&P 500 stocks.

Data-storage company Iron Mountain (NYSE:IRM), oil-and-gas producer Range Resources (NYSE:RRC) and pharmaceutical giant Merck (NYSE:MRK)were the S&P 500's worst performers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.