* Dow, S&P, Nasdaq closed at record highs on Thursday
* Restoration Hardware drops after cutting profit forecast
* Broadcom up on strong results, forecast and dividend
* Indexes up: Dow 0.2 pct, S&P 0.33 pct, Nasdaq 0.55 pct
(Updates to open)
By Yashaswini Swamynathan
Dec 9 U.S. stocks opened higher on Friday,
extending a post-election rally, with gains in healthcare and
technology sectors lifting the Nasdaq and the S&P 500 to fresh
The "Trump rally" has been running since the Nov. 8 vote as
investors bet President-elect Donald Trump's policies will boost
economic growth and inflation.
The three main U.S. indexes closed at record levels for the
second day in a row on Thursday, while the small cap Russell
2000 and the Dow Transport hit all-time highs.
Adding to the upbeat mood has been a spate of recent robust
economic data, including monthly hiring numbers, GDP growth and
inflation, which have underscored the economy's strength.
With the rally about to enter its second month, valuations
may come under focus.
The S&P 500 is currently trading at about 17.5 times forward
twelve-month earnings, above the 10-year median of nearly 15
times, according to Thomson Reuters StarMine.
"We are leaning in the direction of going up, and at some
point it will get too much, but apparently the market is telling
us that today is not too much," said Kim Forrest, senior equity
research analyst, Fort Pitt Capital Group in Pittsburgh.
Oil prices rose 0.7 percent, up for the second day in a row,
on optimism that a non-OPEC producers meeting would result in an
agreement to bolster the group's output cut deal.
The resilience of the stock market will be put to test after
the Federal Reserve's policy meeting next week, where traders
expect a 94 percent chance of an interest rate increase.
At 9:53 a.m. EDT the Dow Jones industrial average was
up 39.16 points, or 0.2 percent, at 19,653.97, the S&P 500
was up 7.44 points, or 0.33 percent, at 2,253.63 and the
Nasdaq Composite was up 30.06 points, or 0.55 percent,
Eight of the 11 major S&P 500 sectors were higher, led by a
0.86 percent rise in health stocks and 0.40 percent in
Financials, which have been the best performers in
the rally, were off 0.6 percent.
Restoration Hardware plunged 17.80 percent to $32.05
after the furniture retailer lowered its fourth-quarter profit
forecast, citing slow sales in the holiday period.
Wynn Resorts rose 7.5 percent to $95 after Macau,
the world's biggest gambling hub, clarified it had not tightened
daily cash withdrawal limits for Chinese gamblers.
Broadcom rose 5.7 percent to $180.50 after the
chipmaker reported upbeat fourth-quarter results and forecast,
and doubled its dividend.
Biogen rose 4.3 percent to $302.10 following a
study that showed higher doses of its Alzheimer's drug appeared
to reduce the risk of brain swelling.
Advancing issues outnumbered decliners on the NYSE by 1,667
to 998, for a 1.67-to-1 ratio on the upside. On the Nasdaq,
1,611 issues rose and 823 fell for a 1.96-to-1 ratio favoring
The S&P 500 index showed 34 new 52-week highs and no new
lows, while the Nasdaq recorded 185 new highs and four new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by
Savio D'Souza and Saumyadeb Chakrabarty)