March 11, 2019 / 11:34 AM / 3 months ago

Wall Street snaps five-day losing streak despite Boeing's drop

NEW YORK (Reuters) - U.S. stocks jumped on Monday as the technology sector led a broad-based rebound following five straight sessions of losses, but a fall in Boeing’s shares limited the Dow’s advance after a deadly airline crash in Ethiopia.

Boeing Co, the world’s largest planemaker and best-performing Dow component this year by a wide margin, ended down 5.3 percent at $400.01, registering its biggest one-day percentage drop since Oct. 29, after many airlines grounded the company’s new 737 MAX 8 passenger jet following the second fatal crash involving the aircraft in just five months.

The stock had its highest daily trading volume since July 2013 and ended well off its session low of $365.55, but it kept a lid on the Dow, which managed only about half the gains of the S&P 500.

All the major S&P sectors rose, led by gains in the technology sector, which was up 2.2 percent. The industrial sector reversed early losses to end up 0.9 percent.

“After the weakness in the markets last week, things have gotten a little bit oversold,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

“It was incredibly impressive when you look at what we’re doing today, even with the move in Boeing,” he said, adding that tech’s rally is “a sign of overall enthusiasm for equities and the continued bullish tone we’ve been in since the beginning of the year, last week notwithstanding.”

The Dow Jones Industrial Average rose 200.64 points, or 0.79 percent, to 25,650.88, the S&P 500 gained 40.23 points, or 1.47 percent, to 2,783.3 and the Nasdaq Composite added 149.92 points, or 2.02 percent, to 7,558.06.

The S&P 500 last week registered its biggest decline since the end of 2018 after tepid job and other economic data, but the index is up about 11 percent for the year so far.

Apple Inc rose 3.5 percent after Bank of America Merrill Lynch upgraded the iPhone maker’s shares to “buy.” Also, Apple invited media to a March 25 event at the Steve Jobs Theater on its campus in Cupertino, California.

Sources previously told Reuters that Apple is targeting April for the launch of a streaming television service that will likely include subscription TV service.

Chipmaker Nvidia Corp jumped after entering a $6.8 billion deal to buy Mellanox Technologies Ltd. The Israeli chip designer also rose.

In Washington, President Donald Trump told Congress to slash funding for foreign aid and the State Department and increase spending for the military and the wall he wants to build on the U.S.-Mexico border in his 2020 budget, the opening move in his next funding fight with Congress.

Defense companies General Dynamics Corp, United Technologies Corp and Textron Inc rose on the news.

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Advancing issues outnumbered declining ones on the NYSE by a 3.69-to-1 ratio; on Nasdaq, a 3.31-to-1 ratio favored advancers.

The S&P 500 posted 31 new 52-week highs and two new lows; the Nasdaq Composite recorded 57 new highs and 34 new lows.

About 7.1 billion shares changed hands on U.S. exchanges. That compares with the 7.4 billion-share daily average for the past 20 trading days.

Additional reporting by Amy Caren Daniel and Medha Singh in Bengaluru; Editing by Shounak Dasgupta, Chizu Nomiyama and Jonathan Oatis

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