Stocks - Dow Tops 27,000 as UnitedHealth Soars

11 Jul 2019

Stocks - Dow Tops 27,000 as UnitedHealth Soars

The Dow hit a new high as it topped 27,000 for the first time on Thursday thanks to a huge gain for health insurance giant UnitedHealth Group and sizable for gains for Boeing (NYSE:BA) and Goldman Sachs (NYSE:GS).

But stocks overall were mixed. While the Dow industrials finished up 0.85%, the S&P 500 was up just 0.23%. The NASDAQ Composite fell 0.08%.

The Dow surged above 27,000 at about 11 a.m. It dipped in the afternoon and then shot back up to 27,088, a gain of 224 points. The catalyst was news the Trump administration had abandoned a proposal to end rebates paid to middlemen who negotiate drug prices on behalf of health insurers. That was great news for UnitedHealth Group (NYSE:UNH), whose shares jumped 5.6% and added around 90 points to the Dow's gain by itself.

Boeing (NYSE:BA), up 1.9%, added 46 points to the blue-chip index. Goldman Sachs (NYSE:GS), up 2.6%, added 24 points to the index.

The rest of the market was bedeviled by rising interest rates and weakness in telecom and tech stocks. Restate and utilities stocks were lower as the 10-year Treasury yield rose to 2.12%. Telecommunications and communications stocks also fell.

Amazon.com (NASDAQ:AMZN) reached as high as $2,035.80, sporting a market cap of more than $1 trillion in the process. But the shares slid in the afternoon, ending down 0.81%.

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