Tuesday , June 27 2017

US stocks eke out weekly gain, led by high-dividend firms



US equities rose this week thanks largely to
advances in companies with high dividends that investors turn to when bond yields fall.
The S&P 500 Index added 0.2 percent to 2,378.25. The biggest boost came Wednesday after the Federal Reserve raised the benchmark lending rate a quarter point and maintained its projection for two more increases this year. At the same time, the Bloomberg Economic Surprise Index advanced for the fourth straight week as data from payrolls to inflation figures met or exceeded estimates. The Dow Jones Industrial Average was little changed at 20,914.62.
The Russell 200 Index jumped 1.9 percent, the most since December.
“The Fed can lift rates and it is far from being bad news for equities,” Tobias Levkovich, managing director and head of U.S. equity strategy at Citigroup Global Markets Inc., wrote in a note to clients on Friday. “Yet, higher rates could be an issue for some equity areas, particularly growth stocks and small caps.”
Lower bond yields had a mixed effect on the market: high-dividend companies targeted by investors seeking fixed payments rallied, while financial shares declined 0.9 percent for the second straight weekly loss.
The yield on the 10-year Treasury fell 7.4 basis points in the week. For the second week in a row, utility companies were among
the best-performing groups, along with real estate and phone shares.

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A man looks at an electronic stock indicator showing global stock prices including Japan's benchmark Nikkei 225, top center, which gained 255.93 points, or 1.77 percent, and closed at 14,718.34 in Tokyo Monday, Feb. 10, 2014. Asian stock markets were mostly higher Monday as investors looked ahead to Janet Yellen's first comments before Congress as the new Federal Reserve chairwoman. (AP Photo/Shizuo Kambayashi) (AP Photo/Shizuo Kambayashi)

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