Wall Street up despite travel industry falls – New York Report
MAJOR gains in energy shares yesterday helped the indicies rise as investors bet Friday’s deadly attacks in Paris would have little long-term effect on the US economy and corporate earnings.
In their strongest day since 22 October, the Dow Jones industrial average ended 1.38 per cent higher at 17,482.61 points and the S&P 500 gained 1.49 per cent to 2,053.17.
The Nasdaq Composite jumped 1.15 per cent to 4,984.62.
US oil prices rose after French air strikes in Syria in reaction to multiple attacks in Paris on Friday that killed 129 people, with Islamic State claiming responsibility.
Exxon’s shares jumped 3.58 per cent and Chevronrallied 4.38 per cent.
However, companies linked to travel and leisure took a hit. American Airlines dropped 1.43 per cent, United Continental 1.22 per cent and Delta Airlines 2.16 per cent. Cruise operator Carnival fell 1.53 per cent, while travel company Expediawas down 2.13 per cent.
Starwood Hotels fell 3.63 per cent to $72.27 after agreeing to be bought by Marriott International for $12.2bn. Marriott rose 1.35 per cent.
Billionaire investor Warren Buffett told CNBC he was not selling any securities as a result of the attacks.
Buffett cut his stakes in Goldman Sachs and Wal-Mart in the quarter to 30 September, and raised his holding in IBM, according to a regulatory filing. Goldman was up 0.9 per cent. IBM was up 1.5 per cent and Wal-Mart 2.6 per cent.
Despite uncertainty associated with Friday’s attacks in France, Wall Street remains focused on expectations that the US Federal Reserve could hike interest rates in December for the first time in nearly a decade.