Technology Stocks Lead Wall Street’s Rise

(Reuters) – The three major U.S. indexes rose in late morning trading on Thursday with stocks of technology companies leading the pack, followed by industrials.

Gains in Apple and Alphabet lifted tech stocks and were among the biggest boosts to the S&P and the Nasdaq.

Chipmaker Broadcom’s upbeat profit and dividend raise received investor support with shares rising.

General Electric rose 1.6 percent after the industrial conglomerate said it was cutting 12,000 jobs at its global power business.

Lululemon Athletica gained 8 percent after the Canadian yoga and leisure apparel maker reported a higher-than-expected profit and gave an upbeat holiday season forecast.

“It looks as though technology once again is leading the way here, but basically the broader market is still struggling,” said Peter Cardillo, chief market economist at First Standard Financial in New York.

Strong earnings and solid economic growth have pushed stocks to record levels this year and Republican efforts to cut corporate taxes have added to the momentum.

The Senate Republicans on Wednesday agreed to talks with the House of Representatives on the tax bill amid early signs that lawmakers could agree on a final bill ahead of a self-imposed Dec. 22 deadline.

However, a gridlock between President Donald Trump and Congress over the passage of spending legislation before Friday has raised fears of partial shut down of the federal government.

At 10:46 a.m. ET (1546 GMT), the Dow Jones Industrial Average was up 47.78 points, or 0.2 percent, at 24,188.69 and the S&P 500 was up 6.3 points, or 0.24 percent, at 2,635.57.

The Nasdaq Composite was up 45.12 points, or 0.67 percent, at 6,821.50.

Eight of the 11 major S&P sectors were higher, with industrial and technology sectors leading the gainers.

Consumer staples index’s 0.55 percent fall led the decliners. Procter & Gamble and Coca-Cola fell about 1 percent, dragging the sector down.

Data showed the number of Americans filing for unemployment benefits unexpectedly fell last week, with claims for state unemployment benefits slipped 2,000 to 236,000 for the week ended Dec. 2. Economists polled by Reuters had forecast claims rising to 240,000.

The report comes ahead of a more comprehensive government payrolls data on Friday, where investors are looking to gauge the strength of the labor market.

Advancing issues outnumbered decliners on the NYSE by 1,727 to 988. On the Nasdaq, 1,956 issues rose and 768 fell.

(Reporting by Sruthi Shankar and Rama Venkat Raman in Bengaluru; Editing by Arun Koyyur)