* Telecoms, real estate sectors lead gains
* Trump comments on pricing hammer pharma, biotech stocks
* Western Digital top gainer on S&P after results
* Indexes up: Dow 1.32 pct, S&P 0.97 pct, Nasdaq 0.92 pct
(Updates with late afternoon trading)
By Lewis Krauskopf
Dec 7 Wall Street surged on Wednesday, with the
S&P 500 and Dow hitting fresh record intraday highs, as equities
continued their march upward after the presidential election of
Donald Trump, even as his comments on prescription drug pricing
wounded the healthcare sector.
The Dow Jones Transport Average, closely watched as a
barometer of the broader market, hit a new all-time intraday
high, surpassing its prior record from November 2014.
U.S. equities have climbed to new highs since Trump's
election, with investors encouraged by his plans for an economic
stimulus package and to reduce corporate taxes and regulations.
"I think it's continuation of the view that the new
administration will be pro-business," said Ernie Cecilia, chief
investment officer of Bryn Mawr Trust in Bryn Mawr,
The Dow Jones industrial average rose 254.19 points,
or 1.32 percent, to 19,505.97, the S&P 500 gained 21.37
points, or 0.97 percent, to 2,233.6 and the Nasdaq Composite
added 49.14 points, or 0.92 percent, to 5,382.14.
Gains were broad-based with nine of 11 sectors in positive
A $3-billion trading program to buy a broad spectrum of
stocks came into the market in the afternoon and "really just
sparked this market to move higher and higher," said Jonathan
Corpina, senior managing partner for Meridian Equity Partners,
an equity and options broker-dealer in New York.
Telecommunications and real estate,
which are high dividend payers, posted the strongest sector
"There's a little bit of a bond market rally going on,
certainly in the long end, so that means dividend stocks feel
better," said Brian Battle, director of trading at Performance
Trust Capital Partners in Chicago.
Trump's victory has been seen as a boon, particularly for
financial and industrial stocks that have surged since the
But biotechnology and pharmaceutical stocks tumbled on
Wednesday after Trump promised in a Time magazine article that
"I'm going to bring down drug prices."
The S&P healthcare fell 0.9 percent, by far the
worst performing group. The Nasdaq Biotechnology index
was off 2.7 percent, recovering from steeper losses initially
after Trump's comments were publicized.
Trump's effect was seen on Tuesday, as well, with Boeing's
stock falling briefly after his tweet that an order for a
revamped Air Force One plane should be canceled over high costs.
"I think it is a new fact of life, going forward, that
fundamentals can be swept aside any day by comments from the
(President-elect)," said David Donabedian, chief investment
officer of Atlantic Trust Private Wealth Management.
In corporate news, Western Digital rose 8.1 percent
after the data storage company raised its second-quarter profit
and revenue forecasts. The stock was the top percentage gainer
on the S&P.
Advancing issues outnumbered declining ones on the NYSE by a
3.19-to-1 ratio; on Nasdaq, a 1.85-to-1 ratio favored advancers.
The S&P 500 posted 86 new 52-week highs and 7 new lows; the
Nasdaq Composite recorded 305 new highs and 26 new lows.
(Additional reporting by Sinead Carew in New York and
Yashaswini Swamynathan in Bengaluru; Editing by Nick Zieminski)