Dividend-paying stocks pull U.S. indexes up; drugmakers dive

Posted On December 7, 2016 8:45 pm

NEW YORK • U.S. indexes are leaping to all-time highs in a broad rally Wednesday afternoon. Investors are buying stocks that do well in times of faster economic growth, like technology and industrial companies, but they’re also snapping up stocks that pay large dividends. Drug companies are taking steep losses after President-elect Donald Trump said he wants to reduce drug prices.

KEEPING SCORE: The Dow Jones industrial average jumped 286 points, or 1.5 percent, to 19,538 as of 3:35 p.m. Eastern time. The Standard & Poor’s 500 index rose 27 points, or 1.2 percent, to 2,239. The Nasdaq composite recovered from an early loss to rise 62 points, or 1.2 percent, to 5,394, within 4 points of all-time high. The Russell 2000 index of small-company stocks is also on track for a record close.

RECORD RECAP: The Dow and S&P 500 are on track for their biggest gains since Nov. 7, the day before the presidential election. Transportation stocks also reached all-time highs, which hasn’t happened in two years. Julian Emanuel, an equity strategist for UBS, said investors were pleased to see that record because they see it as a sign businesses will start spending more, which would bolster economic growth.

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