Trump bets blast Dow to new high, bank sector hits 2008 levels

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Nov 10 (Reuters) - U.S. banking sector shares on Thursday surged to levels not seen since the midst of the 2008 financial crisis, pushing the Dow to an all-time high, while technology shares sank as Wall Street rearranged its bets to benefit from Donald Trump's presidency.

The S&P 500 financial sector surged 3.70 percent to its highest since the 2008 financial crisis, bringing its gain since Trump's surprise victory in Tuesday's election to 7.9 percent, its biggest two-day gain since 2011.

Shares of Wells Fargo & Co jumped 7.58 percent to their highest since January, and have now erased all of the losses incurred in the wake of a scandal over fake accounts opened by its employees. Bank of America surged 4.40 percent and JPMorgan Chase rallied 4.64 percent to a record high.

Trump has sided with leading conservatives in calling for the repeal of the 2010 Dodd-Frank Financial Reform Act largely opposed by banks.

"The Trump campaign did say it would repeal Dodd-Frank. Rates are higher and the yield curve is steeper. Those are all good things for the banks," said Warren West, principal at Greentree Brokerage Services in Philadelphia.

33 PHOTOS
Signs from anti-Trump protests across the country
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Signs from anti-Trump protests across the country

A woman takes part during a protest against President-elect Donald Trump in New York City on November 9, 2016.

(KENA BETANCUR/AFP/Getty Images)

Demonstrators gather to rally against Donald Trump as President at the Parkman Bandstand on Boston Common in Boston on Nov. 9, 2016.

(Photo by John Blanding/The Boston Globe via Getty Images)

People protest outside Trump Tower following President-elect Donald Trump's election victory in Manhattan, New York, U.S., November 9, 2016.

(REUTERS/Andrew Kelly/TPX IMAGES OF THE DAY)

Protesters hold signs during a protest against the election of President-elect Donald Trump, Wednesday, Nov. 9, 2016, in downtown Seattle.

(AP Photo/Ted S. Warren)

Protesters reach Trump Tower as they march against Republican president-elect president Donald Trump in the neighborhood of Manhattan in New York, U.S., November 09, 2016.

(REUTERS/Eduardo Munoz)

Protestors march against Republican Donald Trump's victory in Tuesday's U.S. presidential election in Philadelphia, Pennsylvania, U.S. November 9, 2016.

(REUTERS/Mark Makela)

People stage a protest against President-elect Donald Trump of Republican Party in front of the Trump Tower in Chicago, United States on November 9, 2016.

(Photo by Bilgin S. Sasmaz/Anadolu Agency/Getty Images)

A sign reading "Grab Her By The What Mr. President" lies on the ground as people gather to protest the election of Republican Donald Trump as the president of the United States outside of City Hall in Los Angeles, California, U.S. November 9, 2016.

(REUTERS/Patrick T. Fallon)

Protesters walk during a protest against Republican president-elect Donald Trump in Chicago, Illinois, U.S. November 9, 2016.

(REUTERS/Kamil Krzacznski/TPX IMAGES OF THE DAY)

A protester holds a sign during a protest against Republican president-elect Donald Trump outside Trump International Hotel and Tower in Chicago, Illinois, U.S. November 9, 2016.

(REUTERS/Kamil Krzacznski)

Protesters hold signs in opposition to the election of Republican Donald Trump as President of the United States in Boston, Massachusetts, U.S. November 9, 2016.

(REUTERS/Mary Schwalm)

Cristina Levert, who attended Berkeley High and who has a 17 year-old who attends Berkeley High, holds up a sign during a protest in response to the election of Republican Donald Trump as President of the United States in Berkeley, California, U.S. November 9, 2016.

(REUTERS/Elijah Nouvelage)

A protester holds a sign during a protest against Republican president-elect Donald Trump outside Trump International Hotel and Tower in Chicago, Illinois, U.S. November 9, 2016.

(REUTERS/Kamil Krzacznski)

A protester holds sign that reads "Not My President" during a protest against the election of President-elect Donald Trump, Wednesday, Nov. 9, 2016, in downtown Seattle.

(AP Photo/Ted S. Warren)

Felomina Cervantes, of Seattle, holds a sign that reads "Shame on You America" as she takes part in a protest against President-elect Donald Trump, Wednesday, Nov. 9, 2016, in Seattle's Capitol Hill neighborhood.

(AP Photo/Ted S. Warren)

A protester holds a sign that reads "Dump Trump" as she takes part in a protest against the election of President-elect Donald Trump, Wednesday, Nov. 9, 2016, in downtown Seattle.

(AP Photo/Ted S. Warren)

People stage a protest against President-elect Donald Trump of Republican Party in front of the Trump Tower in Chicago, United States on November 9, 2016.

(Photo by Bilgin S. Sasmaz/Anadolu Agency/Getty Images)

Protestors shout slogans during a demonstratioin on 5th Avenue across from Trump Tower on November 9, 2016 in New York, after Donald Trump was elected as the next president of the US.

(MANDEL NGAN/AFP/Getty Images)

Hundreds protest in opposition of Donald Trump's presidential election victory on Boston Common in Boston, Wednesday evening, Nov. 9, 2016.

(AP Photo/Charles Krupa)

A protester holds a sign during a protest against Republican president-elect Donald Trump outside Trump International Hotel and Tower in Chicago, Illinois, U.S. November 9, 2016.

(REUTERS/Kamil Krzacznski)

Protesters demonstrate across the street from Trump Tower after the election selected Republican president-elect Donald Trump in New York, New York, U.S. November 9, 2016.

(REUTERS/Carlo Allegri)

Demonstrators protest against the election of U.S. president-elect Donald Trump in front of the White House in Washington November 9, 2016.

(REUTERS/Kevin Lamarque)

A woman holds a placard at an anti-racism protest against U.S. President-elect Donald Trump outside of the U.S. Embassy in London, Britain, November 9, 2016.

(REUTERS/Hannah McKay)

People gather to protest the election of Republican Donald Trump as the president of the United States outside of City Hall in Los Angeles, California, U.S. November 9, 2016.

(REUTERS/Patrick T. Fallon)

Protestors march against Republican Donald Trump's victory in Tuesday's U.S. presidential election in Philadelphia, Pennsylvania, U.S. November 9, 2016.

(REUTERS/Mark Makela)

Demonstrators gather before start of rally against Donald Trump as President at the Parkman Bandstand on Boston Common in Boston on Nov. 9, 2016.

(Photo by John Blanding/The Boston Globe via Getty Images)

Demonstrators hold signs during a rally against U.S. President-elect Donald Trump near Trump Tower in New York, U.S., on Wednesday, Nov. 9, 2016. Thousands of demonstrators took to the streets in Manhattan on Wednesday night and converged on Trump Tower in Midtown to protest the election of Donald J. Trump as president.  

(Photographer: Andrew Harrer/Bloomberg via Getty Images)

A protestor holds a placard on 5th Avenue across the street from Trump Tower on November 9, 2016, after Donald Trump won the election.

(MANDEL NGAN/AFP/Getty Images)

A demonstrator holds a sign and protests against Donald Trump's presidency at Washington Square Park on November 9, 2016 in New York City.

(Photo by Matthew Eisman/WireImage)

A demonstrator carries a placard in protest against the election of Republican Donald Trump as President of the United States, across from the Trump International Hotel & Tower in Las Vegas, Nevada, U.S. November 9, 2016.

(REUTERS/David Becker)

Members of the global civic movement Avaaz gather outside the White House on election night to protest against bigotry, Tuesday Nov. 8, 2016 in Washington, DC.

(Molly Riley/AP Images for AVAAZ)

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Apple dropped 2.79 percent while Amazon.com fell 3.82 percent and the S&P 500 technology index fell 1.59 percent.

The Dow Jones industrial average jumped 1.17 percent to end at 18,807.88, smashing through its previous record high set in August by almost 1 percent.

The S&P 500 rose 0.2 percent to 2,167.48 while the Nasdaq Composite dropped 0.81 percent to 5,208.80, hurt by losses in tech shares.

With Thursday's gain, the Dow is up 8 percent in 2016 and the S&P 500 is up 6 percent.

High-dividend sectors utilities, telecom services and consumer staples sold off by more than 2 percent as bond yields rose due to expectations of higher interest rates.

The market got a lift after St. Louis Federal Reserve President James Bullard said the Republican sweep of the White House and Congress could break the current gridlock over national policy in a potential boon to the U.S. economy.

Industrials trailed the financials with a 2.05 percent advance.

Macy's rose 5.6 percent after the department store operator raised its full-year sales forecast and announced a partnership to monetize some of its real-estate assets.

After the bell, Nordstrom reported quarterly results that sent its shares 5 percent higher while Walt Disney's quarterly report pushed its stock down 2.6 percent.

Declining issues outnumbered advancing ones on the NYSE by a 1.15-to-1 ratio; on Nasdaq, a 1.58-to-1 ratio favored advancers.

The S&P 500 posted 84 new 52-week highs and seven new lows; the Nasdaq Composite recorded 336 new highs and 48 new lows.

About 12.3 billion shares changed hands on U.S. exchanges, far above the 7.3 billion daily average over the last 20 sessions. (Additional reporting by Yashaswini Swamynathan in Bengaluru; Editing by James Dalgleish)

10 PHOTOS
Business leaders who endorse Donald Trump
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Business leaders who endorse Donald Trump

Steve Forbes, Chairman and Editor-in-Chief of Forbes 

Photo: Reuters

Peter Thiel, Venture Capitalist, co-founder of PayPal

Photo: Reuters

Kenneth Langone, co-founder of The Home Depot

Photo: Getty

Bernard 'Bernie' Marcus, co-founder and former chairman of Home Depot 

Photo: Getty

Pete Coors, Chairman of MillerCoors

Photo: Getty

Linda McMahon, formerly CEO of World Wrestling Entertainment

Photo: Getty

Brian France, Chairman and CEO of NASCAR

Photo: Reuters

Herman Cain, American author and business executive

Photo: Reuters

Carly Fiorina, former CEO of Hewlett-Packard
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Markets

S&P 500 2,259.53 13.34 0.59%
DJIA 19,756.85 142.04 0.72%
NASDAQ 5,444.50 27.14 0.50%
DAX 11,203.63 24.21 0.22%
HANG SENG 22,760.98 -100.86 -0.44%
NIKKEI 225 18,996.37 230.90 1.23%
USD (per EUR) 1.06 -0.01 -0.57%
USD (per CHF) 1.02 0.00 0.12%
JPY (per USD) 115.38 0.02 0.01%
GBP (per USD) 1.26 0.00 0.03%

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