Wall Street surges as consumer and bank stocks gain

Traders work on the floor of the New York stock exchange on 8 January 2018. Reuters

The Dow Jones Industrial Average climbed almost one percent, adding 205.6 to a close of 25,574.73.

The Nasdaq composite also hit a record high, as shares of Apple gained 0.4 percent. All three benchmarks were on track for weekly gains of at least 1%. The Dow is up around 4.3 percent since January 2, the S&P is up 4.2 percent.

Amazon rose 1.8 percent and provided the biggest boost to the S&P and the Nasdaq.

The S&P consumer discretionary index jumped 0.81 percent after an increase in retail sales showed households bought more goods and figures for the prior month were revised higher, suggesting the economy exited 2017 with strong momentum.

Bank stocks also gained from a rise in Treasury yields after underlying USA consumer prices for December posted their biggest gain in 11 months, signaling a pickup in inflation.

Wells Fargo shed 0.7% as fourth-quarter earnings rose 17% to US$6.2 billion, (RM24 billion) but were marred by US$3.3 billion in litigation costs, some in the aftermath of the fake accounts scandal.

The Nasdaq is up 124.50 points, or 1.7 percent.

The Dow is up 1,083.97 points, or 4.4 percent.

Among other stocks, Facebook fell 3.5 percent after the company started changing the way it filters posts and videos on News Feed.



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