Stock Market News for November 11, 2014 - Market News

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Benchmarks posted modest gains on Monday, boosted by a rally in healthcare and transportation stocks. The S&P 500 and the Dow's modest gains helped the indexes to settle at record highs for the fourth consecutive session.

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The Dow Jones Industrial Average (DJI) gained 0.2% to close at 17,613.74. The Standard & Poor 500 (S&P 500) increased 0.3% to close at 2,038.26. The tech-laden Nasdaq Composite Index closed at 4,651.62; gaining 0.4%. The fear-gauge CBOE Volatility Index (VIX) went down 3.4% to settle at 12.67. A total of 6.1 billion shares were traded on Monday, lower than this month average of 7 billion. Advancers outpaced declining stocks on the NYSE. For 55% stocks that advanced, 42% declined.

The blue-chip index closed at a record level for the 23rd time this year. The S&P 500 also achieved its 39th record finish of 2014.  Both the indexes went up over 7% in the last three weeks, registering their best three-week performance since Oct 2011. The tech-laden Nasdaq too closed at a record high, the highest level since Mar 2000.

Gains in healthcare stocks helped benchmarks close at record levels. The Health Care Select Sector SPDR (XLV) gained 1%, the highest among the S&P 500 sectors. Shares of drug manufacturer AbbVie Inc. ( ABBV ) increased 3.7%, the biggest percentage gainer among the S&P 500 components. Bio-tech stocks also rallied on Monday. Shares of bio-tech companies such as Gilead Sciences Inc. ( GILD ), Vertex Pharmaceuticals Incorporated ( VRTX ), Amgen Inc. ( AMGN ), Biogen Idec Inc. ( BIIB ), Celgene Corporation ( CELG ) and Regeneron Pharmaceuticals, Inc. ( REGN ) increased 0.5%, 0.9%, 1.8%, 2.2%, 1.5% and 2.2%, respectively.

The Health Care sector bounced back after being hit hard last Friday. Analysts believe healthcare stocks probably went up due to the pending review of the Affordable Care Act by the U.S. Supreme Court. Healthcare stocks took a beating on Friday after the apex court decided to hear a new challenge to a crucial part of the Affordable Care Act. 

Internet stocks too gained on Monday. Shares of Internet television network provider Netflix, Inc. ( NFLX ), online retailer Amazon.com Inc. ( AMZN ) and online trading community eBay Inc. ( EBAY ) increased 0.8%, 1.8% and 0.7%, respectively.

Other Internet stocks such as LinkedIn Corporation ( LNKD ), Yahoo! Inc. ( YHOO ) and FireEye, Inc. ( FEYE ) gained 2.8%, 1.8% and 5.8%, respectively.

Gains in bio-tech and Internet stocks ensured a positive finish for the Nasdaq. Meanwhile, gains among transportation shares lifted the broader market. The Dow Jones Transportation Average climbed 1.3%, to close at a record high of 9,068.48. Gains among transportation shares were led by railroads and airlines. Shares of major companies from the railroad industry such as Union Pacific Corporation ( UNP ), CSX Corp. ( CSX ) and Kansas City Southern ( KSU ) increased 1.8%, 3.1% and 1.2%, respectively.

Shares of U.S. airline companies such as JetBlue Airways Corporation ( JBLU ), Delta Air Lines Inc. ( DAL ), United Continental Holdings, Inc. ( UAL ), American Airlines Group Inc. ( AAL ), The Boeing Company ( BA ) and Southwest Airlines Co. ( LUV ) surged 4.2%, 1.6%, 1.2%, 1.5%, 0.2% and 2.3%, respectively.

Drop in oil prices boosted airline stocks. Prices of WTI crude oil and Brent crude oil decreased 1.6% and 1.3% to $77.4 and $82.34, respectively.

However, decline in oil prices had a negative impact on energy shares. The Energy Select Sector SPDR (XLE) declined 0.9%. The sector was the biggest loser among the S&P 500 sectors. Shares of key energy stocks including Halliburton Company ( HAL ), Chesapeake Energy Corporation ( CHK ), Baker Hughes Incorporated ( BHI ) and Schlumberger Limited ( SLB ) dropped 0.4%, 2.2%, 1.3% and 0.5%, respectively.

Shares of cable providers also dropped on Monday after U.S. President Barack Obama said the Federal Communications Commission should regulate broadband like a public utility. Shares of Time Warner Cable Inc. ( TWC ), Comcast Corporation ( CMCSA ) and Cablevision Systems Corporation ( CVC ) plunged 4.9%, 3.9% and 1.7%, respectively.

Meanwhile, investors kept an eye on corporate earnings results. Dean Foods Company ( DF ) posted third quarter 2014 diluted loss from continuing operations of 3 cents per share, less than the Zacks Consensus Estimate of a loss of 13 cents. Shares of Dean Foods surged 13.7%.

Shares of Toll Brothers Inc. ( TOL ) went up 2.3% after the luxury homebuilder's preliminary fourth-quarter 2014 revenue jumped 29.3% to $1.35 billion, more than analysts' expectations of $1.31 billion.

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GILEAD SCIENCES (GILD): Free Stock Analysis Report

VERTEX PHARM (VRTX): Free Stock Analysis Report

AMGEN INC (AMGN): Free Stock Analysis Report

BIOGEN IDEC INC (BIIB): Free Stock Analysis Report

CELGENE CORP (CELG): Free Stock Analysis Report

REGENERON PHARM (REGN): Free Stock Analysis Report

NETFLIX INC (NFLX): Free Stock Analysis Report

AMAZON.COM INC (AMZN): Free Stock Analysis Report

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LINKEDIN CORP-A (LNKD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , US Markets
Referenced Symbols: XLV , XLE , ABBV , GILD , VRTX

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