U.S. Stocks Extend Gains on Strong Car Sales
By Riva Gold and Corrie Driebusch -- Treasury yields, dollar around highest since July -- Hong Kong stocks post best day in more than a year -- Wall Street set for new records
U.S. stocks extended gains Tuesday as upbeat car-sales data and a rise in airline stocks helped lift major indexes toward fresh records.
Major auto makers posted solid sales gains in September, a boost to the industry after months of declining results. General Motors shares rose 2.8% and Ford's stock climbed 2.3% after both companies reported sharply higher sales of pickup trucks and SUVs, their most profitable products.
Also rising Tuesday: U.S. airline stocks. Delta Air Lines updated its third-quarter outlook, now including the impact from Hurricane Irma, which resulted in 2,200 flight cancellations. Excluding that, the pricing environment for Delta "appears to be stabilizing, which should be viewed favorably," according to an analyst at Cowen & Co. Shares shot up 6.2%, while competitors American Airlines Group rose 4.5% and United Continental Holdings added 4.6%.
The gains helped lift broader indexes. The Dow Jones Industrial Average rose 72 points, or 0.3%, to 22630. The S&P 500 and the Nasdaq Composite gained 0.1%.
Tuesday's rise built on Monday's records, which came as data showed that U.S. manufacturing activity reached a 13-year high in September, exceeding expectations. That followed solid readings in China and Japan earlier in the week.
"We have another round of data that shows the U.S. economy and international global economy is doing quite well right now," said Willie Delwiche, investment strategist at Robert W. Baird & Co.
"That's being fairly well received by stocks," he added, though he cautioned the market may have gotten slightly ahead of itself in the short term with investor sentiment quite optimistic.
The Stoxx Europe 600 rose 0.2% in its ninth straight session of gains, its longest winning streak since July 2015.
The euro stabilized Tuesday after falling Monday, and was recently up 0.2% at $1.1753.
Earlier, Hong Kong led a climb in Asian markets with the Hang Seng Index jumping 2.2% in its best session of the year. Shares of car maker Geely surged after Morgan Stanley upgraded its rating, while Chinese bank stocks moved higher after the nation's central bank over the weekend reduced the reserves select banks are required to keep with it.
Japan's Nikkei Stock Average rose 1%, building on a two-year high as a weaker yen helped shares of exporters who translate revenue overseas.
Markets in mainland China and South Korea were closed for the week.
--Kenan Machado and Corrie Driebusch contributed to this article.
Write to Riva Gold at email@example.com and Corrie Driebusch at firstname.lastname@example.org
(END) Dow Jones Newswires
October 03, 2017 14:00 ET (18:00 GMT)