Industrials Flat As Shutdown Seen Ending -- Industrials Roundup

FeaturesDow Jones Newswires

Shares of manufacturing and transportation were more or less flat as the federal government looked set to reopen for business thanks to the passage of a stopgap spending bill.

Investors are continuing to chase gains in economically cyclical areas such as industrials in anticipation of stronger earnings growth.

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"The 'melt up' in equity prices has been driven by both sentiment and fundamental improvements," said Bob Doll, chief investment strategist at Nuveen Investments. Expectations for corporate earnings in 2018 were high before the tax bill and are now moving even higher." Further, Mr. Doll said, corporate surveys revealed that companies intended to spend their tax windfall in ways that could further stimulate growth. Among the most popular responses in the survey was capital expenditure, which the industrial sector has long postponed.

--Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

January 22, 2018 16:25 ET (21:25 GMT)

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