Stocks finish 3Q with record highs

Chipmakers, tech companies lead the way; Tyson rises on strong profit forecast

Large technology and health care companies and smaller U.S.-focused firms rose again Friday as stocks finished the third quarter at record highs.

Stocks were mixed at the start of trading, as they had been the day before. But chipmakers and big-name technology companies pulled stocks higher, as they have done all year. Health care companies also did better than the rest of the market. Tyson Foods climbed after it gave strong profit forecasts, and investors cheered strong quarterly results from homebuilder KB Home.

The market ended the quarter on a fourday winning streak that began after Federal Reserve Chair Janet Yellen said the central bank plans to continue to raising interest rates.

“It’s all about the confidence they have that despite low inflation, it still makes sense to raise interest rates,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “She’s confident in the economy and the economic backdrop is very solid.”

The Standard & Poor’s 500 index rose 9.30 points, or 0.4 percent, to 2,519.36. The Dow Jones industrial average turned higher to finish with a gain of 23.89 points, or 0.1 percent, at 22,405.09. The Nasdaq composite jumped 42.51 points, or 0.7 percent, to 6,495.96. The S&P 500 and Nasdaq both closed at all-time highs.

The Russell 2000 index of small-company stocks added 2.08 points, or 0.1 percent, to 1,490.86. It’s also at record highs after a big rally this month. It climbed 6 percent in September as investors felt positive about the U.S. economy and hoped Congress and President Donald Trump’s administration will reduce taxes.

Tyson Foods jumped after the food company raised its annual guidance and said profits for its beef business were better than expected. Thanks in part to cost cuts, Tyson also forecast a bigger profit than analysts expected for next year.

Tyson climbed $5, or 7.6 percent, to $70.45. The stock gained more ground Friday than it had for the rest of this year put together.

Technology companies rose further and were the best-performing S&P 500 sector in the third quarter. They also held that distinction in the first quarter. The S&P 500 technology index has climbed 26 percent in 2017, while the S&P 500 is up 12.5 percent.

Facebook added $2.14, or 1.3 percent, to $170.87 and chip equipment maker Applied Materials rose $1.47, or 2.9 percent, to $52.09. Chipmaker Nvidia advanced $3.09, or 1.8 percent, to $178.77.

Oil prices recovered and turned higher just before the close of trading. Benchmark U.S. crude rose 11 cents to $51.67 a barrel in New York. Brent crude, the standard for international oil prices, rose 13 cents to $57.54 a barrel in London.

U.S. crude oil rose 12 percent in the third quarter, which helped energy companies do better than the rest of the market.

Stocks have risen for eight quarters in a row.