Dow, S&P hit record highs early trade as oil, bank stock gain

The Dow and the S&P 500 have hit on Wednesday record intraday highs, fueled by gains in energy and bank stocks.

Oil prices soared 7.4 percent as some of the world’s largest producers agreed to curb oil output for the first time since 2008.

Shares of oil majors Exxon and Chevron rose more than 2 percent and were the top stocks on the S&P and the Dow.

The S&P 500 energy index rose 3.65 percent as oil prices were on track for their best day since February.

November is set to be Wall Street’s best month since March, with the markets rallying on Donald Trump’s victory in the U.S. presidential election.

Investors expect the market to benefit from Trump’s policies, including higher spending on infrastructure and simpler regulations in the healthcare and banking industries.

U.S. private employers stepped up hiring in November and consumer spending increased last month, the latest signs of economic strength that could further cement the case for an interest rate hike.

Traders have currently priced in an 89 percent chance of the Fed raising rates at its meeting next month, according to Thomson Reuters data. A crucial monthly hiring report on Friday is likely to play a big role in the central bank’s deliberations.

The financial index rose 1.42 percent, while seven of the 11 major S&P sectors fell.

At 9:43 a.m. ET the Dow Jones industrial average was up 94.4 points, or 0.49 percent, at 19,216, after hitting an all-time high of 19,225.29. The S&P 500 was up 9.08 points, or 0.41 percent, at 2,213.74. The index hit a high of 2,214.10. The Nasdaq Composite was up 11.68 points, or 0.22 percent, at 5,391.60. Fed Board Governor Jerome Powell and Cleveland Fed president Loretta Mester are due to speak at separate events later in the day.

Splunk rose 7 percent to $61.40 after the data analytics provider forecast full-year revenue above analysts’ expectations.

GoPro rose 3.3 percent after the wearable camera maker said it would cut 15 percent of its workforce and shut its entertainment business.

Teen apparel retailer American Eagle Outfitters dropped 10.6 percent to $16.88 after providing a disappointing profit forecast for the crucial holiday quarter. [L4N1DV3YU]

Advancing issues outnumbered decliners on the NYSE by 1,592 to 1,152. On the Nasdaq, 1,443 issues rose and 913 fell.

The S&P 500 index showed 41 new 52-week highs and no new lows, while the Nasdaq recorded 82 new highs and 12 new lows.

Source: Reuters