US indexes ring in year with gains

Associated Press

NEW YORK

U.S. stocks broke a three-day losing streak Tuesday and ushered in the new year with broad gains. Health care stocks, which struggled for most of last year, climbed.

Stocks started the day with a surge as the Dow Jones industrial average rose 175 points in the first hour of trading. Bond yields jumped, which took bank stocks higher. The price of oil also rose early on, but it began slipping after 10 a.m. Investors started buying again late in the day, however, and major indexes closed with a flourish.

Energy companies, banks and technology companies made some of the largest gains and lower-risk investments like utility companies lagged the rest of the market. That’s a sign investors expect stronger economic growth that will help those companies do more business.

“Corporate earnings are telling us that it’s a bull market,” said Karyn Cavanaugh of Voya Investment Strategies. Cavanaugh said earnings and revenues look “very good” for 2017.

Bond prices fell slightly. The yield on the 10-year Treasury note rose to 2.45 percent from 2.43 percent late Friday. Yields made a much bigger move earlier in the day.

Utility companies fell Tuesday, and real-estate investment trusts and companies that sell household goods rose less than the rest of the market. Those stocks are often compared to bonds because they pay large dividends, but the jump in yields Tuesday encouraged investors to look elsewhere.

In other energy trading, wholesale gasoline fell 5 cents, or 2.9 percent, to $1.62 a gallon. Heating oil lost 5 cents, or 3 percent, to $1.68 a gallon.

The dollar jumped to 117.68 yen from 116.78 yen. The euro slumped to $1.0410 from $1.0531.