Stocks Rise to New Highs on Senate Deal to End Shutdown

By Akane Otani and Riva Gold Features Dow Jones Newswires

Senate has votes to end government shutdown

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-- U.S. stocks climb to session highs

-- Dollar, government bonds edge lower

U.S. stocks rose to fresh highs Monday after Senate leaders said they reached a deal to end the federal government shutdown.

The Dow Jones Industrial Average added 60 points, or 0.2%, to 26131. The S&P 500 climbed 0.5% and the Nasdaq Composite rose 0.7%, with all three indexes heading toward record closes.

Investors had largely shrugged off the shutdown, which began after the Senate rejected a one-month spending bill late Friday night and by Monday afternoon looked close to ending. U.S. government bonds inched lower, while the WSJ Dollar Index, which tracks the dollar against a basket of 16 other currencies, ticked down 0.1%.

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Economic growth around the world has been solid, helping stocks keep powering higher, even after Congress came to a standstill over legislation in Washington. Investors have also largely bet that the Federal Reserve will stick to a gradual course of interest-rate increases in 2018 -- something they say should help stocks trading near records continue their ascent.

"The market has blinders on," said Kristina Hooper, chief global market strategist at Invesco. "The focus is on sentiment, and with tax cuts and global growth, you've got plenty of things investors feel good about."

Broad gains across sectors helped offset a decline in shares of industrial and materials companies on Monday.

Shares of energy companies in the S&P 500 rose 1.8%, following U.S. crude-oil prices higher. Halliburton Co., Noble Energy Inc. and Schlumberger NV added more than 2% apiece.

Meanwhile, reports of corporate deals swung biotechnology shares.

Sanofi shares fell 3.4% after the French drugmaker said Monday it would buy hemophilia drugmaker Bioverativ Inc. for more than $11.5 billion.

Juno Therapeutics shares jumped 27% after Celgene said it agreed to buy the firm for about $9 billion, while Celgene shares were little changed.

Elsewhere, the Stoxx Europe 600 edged up 0.3%, boosted by a rise in shares of oil-and-gas companies and banks.

Shares of UBS Group lagged behind, however, falling 1.2% after the Swiss bank said charges related to the U.S. corporate tax overhaul pushed it into a fourth-quarter loss.

Stock indexes in Asia showed little reaction to the partial U.S. shutdown. Japan's Nikkei Stock Average was flat, while Hong Kong's Hang Seng Index rose 0.4% to another record close.

Shares of some Apple suppliers declined across the region, however, dragging down some tech-heavy indexes.

South Korea's Kospi fell 0.7% amid a 2.2% drop in shares of index heavyweight Samsung Electronics. The company's stock fell against a backdrop of increased caution over demand for rival Apple's most expensive iPhone.

Kenan Machado and Harriet Torry contributed to this article.

Write to Akane Otani at akane.otani@wsj.com and Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

January 22, 2018 14:43 ET (19:43 GMT)