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Wall Street rises as Syria fears ease; healthcare stocks jump
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Wall Street rises as Syria fears ease; healthcare stocks jump
Apr 16, 2018 12:53 PM

US stocks rose on Monday, boosted by healthcare stocks and on easing fears that the recent US-led missile attack on Syria would escalate into a broader conflict.

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Merck rose 2.5% after the company presented positive data on its cancer drug Keytruda, driving a 0.7% gain in the healthcare index.

The market appeared less concerned about possible retaliation from the air strikes, which marked the biggest intervention by Western countries against Syrian President Bashar al-Assad and his ally Russia.

"The action was well-received ... and that's giving a chance for investors to focus on macro news and earnings," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Attention turned to what is expected to be a robust first-quarter earnings season.

Shares of JB Hunt Transport Services jumped 7% after the trucking company's profit topped estimates.

But Bank of America edged lower despite reporting a better-than-expected increase in quarterly profit.

"People are optimistic in the earnings season ... but there are a lot of forces working in the market - technicals, earnings and geopolitics, which is the biggest wild card," said J.J. Feldman, portfolio manager at Los Angeles-based Miracle Mile Advisors.

At 11:10 a.m. ET, the Dow Jones Industrial Average was up 0.82% at 24,560.96. The S&P 500 gained 0.65% to 2,673.6 and the Nasdaq Composite rose 0.4% at 7,135.34.

All the 11 major S&P sectors were higher, with a 1.2% gain in the utilities index leading the gainers.

Shares of optical components makers Acacia Communications, Oclaro, Lumentum and Finisar took a beating after Reuters reported that the US government was banning American companies from selling components to Chinese telecom equipment maker ZTE Corp.

Netflix fell more than 2%. The company is expected to reports results after the closing bell on Monday.

Advancing issues outnumbered decliners on the NYSE for a 2.90-to-1 ratio. On the Nasdaq, a 1.71-to-1 ratio favoured advancers.

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