High-dividend stocks push US indexes to record highs
High-dividend stocks push US indexes to record highs
Bond yields are falling, and investors seeking income are buying stocks that pay large dividends, like real estate investment trusts.
Health care companies are taking steep losses after President-elect Donald Trump said he wants to reduce drug prices.
Sharp drops in big biotechnology companies like Celgene were holding back the Nasdaq's gains.
Industrial real estate company Prologis rose $1.31, or 2.6 percent, to $52.01 and electricity and natural gas company Exelon added 43 cents, or 1.3 percent, to $33.48.
Hard drive maker Western Digital climbed $4.83, or 7.6 percent, to $68.68 after it extended a patient licensing deal with Samsung.
Western Digital raised its revenue outlook after making the announcement.
Democratic nominee Hillary Clinton campaigned on reducing drug prices, and drug company stocks had rallied since the election as investors felt that was less likely to happen under Trump.
The Nasdaq biotechnology index tumbled 3.1 percent, as those companies make costly medications and might stand to lose the most under tighter price regulations.
Dave & Buster's Entertainment, which owns a chain of restaurants and arcades, reported a bigger profit and higher sales than analysts had expected.
Handbag and accessories maker Vera Bradley sank after it posted weak results and issued a disappointing outlook for the current quarter.