Stocks Advance, Led by Utilities and Drugmakers
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American stocks advanced for the first time this year, led by drugmakers and utilities, after analysts recommended buying shares of companies least affected by an economic slowdown.
Eli Lilly & Co., Biogen Idec Inc., and Celgene Corp. helped push health-care companies to their biggest advance in five months. FPL Group Inc. led gains in utilities, the top-performing industry over the past three months. AT&T Inc., the largest American phone company, and Altria Group Inc., the biggest maker of tobacco products, climbed after Deutsche Bank AG and Goldman Sachs Group Inc. advised purchasing the stocks.
The Standard & Poor’s 500 Index advanced 4.55, or 0.3%, to 1,416.18, rebounding from its worst start to a year since 2000. The Dow Jones Industrial Average increased 27.31, or 0.2%, to 12,827.49. The Nasdaq Composite Index lost 5.19, or 0.2%, to 2,499.46, weighed down by a 10%drop in Nvidia Corp., the second-largest maker of computer graphics chips.
About six stocks rose for every five that fell on the New York Stock Exchange. The S&P 500 swung between gains and losses at least 35 times during the day.
“Both the bulls and bears have pretty good cases and that’s why we’re seeing this flip-flopping,” the senior vice president at Morgan Asset Management, Walter “Bucky” Hellwig, said.
American equities dropped last week as reports on jobs and manufacturing increased concern the economy will shrink. Utilities, health-care providers, telephone companies, and makers of consumer products have been the best performers among 10 industry groups in the S&P 500 this year as investors sought shares that may weather an economic downturn.
