Shares of banks, industrials and health-care companies propelled the Dow Jones Industrial Average to 19000 on Tuesday. The bets on those sectors largely reflect investors’ expectations of looser regulation, and higher growth and interest rates under a Trump administration.
Here is a look at four companies that have benefited from those assumptions, contributing the most points to the blue-chip index’s 1,135.59-point gain since the Dow last closed below 18000 on Nov. 4.
The two banks have been big factors in the blue-chip index’s rally this month, largely because of the improved outlook for bank earnings and the rebound in long-term bond yields, which can make lending activity more profitable.
That has particularly helped J.P. Morgan, the largest bank in the nation by both assets and market value. Since the presidential election, bond yields have risen and the gap between long- and short-dated debt has widened. That should help banks’ income because it increases the difference between what lenders charge on loans and pay out on deposits.
President-elect Donald Trump has also made comments about infrastructure projects to boost the economy. Banks and Wall Street firms such as Goldman Sachs are likely to be in the middle of these plans, either as advisers or lenders. Goldman, which derives more of its revenue from advising companies and trading their...