Wall Street started the year with profits
After pulling back in the last week of 2016 amid the broad market sell-off and thin volumes, the S&P 500 rose on the first trading day of 2017. On January 3, the S&P 500 moved 0.85% higher to 2,257.83—a rise of 19 points. The telecom services and health care sector supported the S&P 500 on Tuesday.
The Dow Jones Industrial Average moved close to 20,000 on December 20 only to pull back from the highs. On January 3, the Dow Jones Industrial Average rose by 119.16 points (0.6%) to 19,881.76. Nasdaq rose by 45.97 points (0.89%) to 5,429.08.
Telecom services sector
After consolidating last week, the telecom sector gained strength and rose on the first trading day of the year. The S&P 500 Telecom Services sector rose 1.9% on January 3. NII Holdings (NIHD) and Globalstar (GSAT) were the top gainers in the telecom sector. NII Holdings provides mobile communications under the name Nextel Telecommunications. It rose 25.6% on January 3. There were unusually higher volumes in NII Holdings on Tuesday.
Verizon Communications (VZ) is one of the largest wireless communications service providers in the US. It rose 2.2% on Tuesday. The sentiment on Verizon became stronger after Citi upgraded it from “neutral” to “buy.” According to Citi research, telecom industry regulations and tax reforms under Trump’s presidency could support Verizon Communications. Expectations of free cash flow made Citi increase Verizon Communications’ target price from $55 to $60. Read Why Verizon Could Press Yahoo for a Discount in Buyout Deal to learn about the Yahoo (YHOO)-Verizon deal.
Health care sector
After falling for two consecutive trading weeks, the health care sector regained strength on January 3. The S&P 500 Health Care sector rose 1.4% on Tuesday. Endo International (ENDP) and AmerisourceBergen (ABC) were the top gainers in the health care sector on January 3. Endo International, a global specialty healthcare company, rose 6.1% to $17.47 on Tuesday. On December 20, Endo International announced that it appointed Blaise Coleman as the executive vice president and CFO.