Stocks rise; drugmakers lead the way

NEW YORK (AP) — U.S. stocks changed course and turned higher Wednesday, with drug and consumer companies leading the way. Investors were willing to take a few more risks than the day before, but they remained cautious, and demand for bonds and precious metals stayed high.

Stocks opened lower, and the Dow Jones industrial average fell as much as 127 points early on. Indexes started moving higher at noon and finished at their highest levels of the day. Phone companies, traditionally safe investments, fell after some recent gains.

Bond prices were little changed after Tuesday’s surge, which pulled the yields on long-term U.S. bonds to their lowest levels ever recorded.

The day before, investors flocked to bonds and sold off all but the steadiest stocks as they worried about the health of Britain’s financial system. Those fears faded a bit on Wednesday, but Kristina Hooper, head of U.S. investment strategies at Allianz Global Investors, said demand for bonds will remain high as the effects of the British vote to leave the European Union ripple through the markets.

“It’s probably safe to assume there will be bouts of continued fear going forward that could drive the yield down … even lower than where we’ve already been,” she said.

The Dow Jones industrial average rose 78 points, or 0.4 percent, to 17,918.62. The Standard & Poor’s 500 index added 11.18 points, or 0.5 percent, to 2,099.73. The Nasdaq composite gained 36.26 points, or 0.8 percent, to 4,859.16.

Drugmakers AbbVie and Biogen led health care stocks higher after regulators in the European Union approved their drug Zinbryta, a treatment for multiple sclerosis that can be taken just once a month. AbbVie rose $1.45, or 2.3 percent, to $63.37 and Biogen gained $5.45, or 2.3 percent, to $247.48.