Shares of tech companies rallied as the upward momentum returned to growth sectors of the market.
One strategist said fears about valuation in the stock market in general and in the tech sector in particular are misplaced, given global economic currents and the historically low interest rates. "If you get the global economy to grow at 4% or so and you get corporate earnings globally to grow in the 12%, 13%, 14% range, and all the while monetary policy remains accommodative across the board, then all of a sudden these multiples don't look so crazy," said Oliver Pursche, chief investment strategist at broker-dealer Bruderman Brothers. Mr. Pursche noted that comparing measures of stock valuation such as the price-to-earnings multiple with historical levels only makes sense if investors also look at the context of Treasury rates.
Apple plans to pay $38 billion in repatriation taxes on profits and cash held overseas following the enactment of the new tax law. Apple also said it plans to spend more than $30 billion to create 20,000 jobs and open a new campus at a U.S. location, to be specified later this year.
The Federal Trade Commission is investigating whether semiconductor company Broadcom engaged in anticompetitive tactics in negotiations with customers, The Wall Street Journal reported.
Rob Curran, email@example.com
(END) Dow Jones Newswires
January 17, 2018 17:41 ET (22:41 GMT)