The U.S. stock market finished higher Tuesday, with the Dow logging its second straight record and a sixth straight session in positive territory on the back of upbeat earnings, shaking off less-than-stellar reports on manufacturing and inflation.
The Dow Jones Industrial Average DJIA, +0.33% added 72.80 points, or 0.3%, to finish at an all-time closing high at 21,963.92, marking its 31st record in 2017 and putting the blue-chip gauge within 40 points of a milestone at 22,000. The Dow had touched an intraday all-time high at 21,990.96 before retreating somewhat.
The S&P 500 index SPX, +0.24% rose 6.05 points, or 0.2%, to 2,476.35, not far from its record close set last week at 2,477.83. Financials and technology were among the best sector performers of the S&P 500’s 11 industry groups.
The Nasdaq Composite Index COMP, +0.23% advanced 14.82 points, or 0.2%, to 6,362.94.
The S&P 500 has climbed to an all-time high on the back of a heavy day of corporate results highlighted by well-received reports from McDonald’s and Caterpillar and gains for bank shares.
On Tuesday the Nasdaq also managed to set a record high despite declines in Google parent Alphabet after its results. Alphabet shares ended down 2.9 per cent.
Shares of McDonald’s rose 4.8 per cent after the fast-food chain reported strong global sales. Caterpillar shares surged 5.9 per cent after the heavy equipment maker raised its full-year outlook for the second time this year.
Data showing a jump in US consumer confidence amid optimism over the labour market added to the bullish sentiment.
The Dow Jones Industrial Average rose 100.26 points, or 0.47 per cent, to 21,613.43, the S&P 500 gained 7.17 points, or 0.29 per cent, to 2477.08 and the Nasdaq Composite added 1.37 points, or 0.02 per cent, to 6412.17.
The S&P 500 and Nasdaq Composite inched forward just 0.7 and 4.9 points respectively to new highs on Friday.
The US stock indices were nearly unchanged throughout the trading day and the S&P 500 ended flat at 2,415.80 while the Dow Jones Industrial Average was also nearly unchanged at 21,080.11. The Nasdaq Composite eked out a modest 0.1 per cent gain to end the day at 6,210.20.
For the S&P 500, the record close was the 20th closing high of this year and the 28th record high since the US presidential election. In all of 2016, by comparison, the S&P 500 notched 18 record closings, according to data from S&P Dow Jones indices.
Despite the three record closings this week, the S&P 500 was up just 1.4 per cent from last Friday, with gains in the utilities, information technology and consumer staples sectors, making up for a sell off in the energy sector.
The price of oil had its steepest fall on Thursday in three weeks after Opec said it would extend output cuts as investors appeared disappointed by the agreement. After paring back some losses on Friday, however, Brent crude settled 2.7 per lower for the week. Stocks within the S&P 500 energy index lost 2.2 per cent over the same period.
Elsewhere, the US dollar index measuring the buck against a basket of its peers was also 0.28 per cent higher at 97.417.
Wall Street failed to hang on to its modest gains on Friday as escalating tensions between the US and Russia over President Donald Trump’s surprise airstrike on Syria weighed on investor sentiment.
The S&P 500 gave up gains of as much as 0.3 per cent to end the day 0.1 per cent lower at 2,355.54. For the week, the index is down 0.3 per cent.
It’s a similar story for the Dow Jones Industrial Average, which closed largely unchanged for the day, as well as for the week at 20.656.10, after having advanced as much as 0.3 per cent earlier on Friday.
The technology-heavy Nasdaq Composite also ended the day flat at 5,877.81 after reaching a session high of 5,892.06.
Stocks had a choppy Friday, with the major indices swinging between minor losses and gains as the markets weighed a weaker-than-expected March jobs report against Mr Trump’s latest foreign-policy shift and a terror attack in Stockholm.
The Trump Rally is back on again.
Wall Street didn’t get the nitty gritty details it wanted on policies such as tax reform and trade from President Trump Tuesday night in his speech to Congress, but the commander-in-chief’s “presidential” tone set investors at ease and they pushed the Dow up more than 300 points to a record-setting close above 21,000.
Investors are taking Trump’s measured and positive demeanor as a sign that he will have a better chance of getting his economic agenda through Congress.
In his address to a joint session of lawmakers, Trump reiterated his push for “historic tax reform” that will put American businesses on a level playing field with foreign competitors, repeated his calls for a $1 trillion infrastructure spending plan and noted that his administration has “undertaken a historic effort to massively reduce job‑crushing regulations.” The president also repeated his promise to repeal and replace Obamacare.
Wall Street was also listening for the things Trump didn’t say. He didn’t echo recent attacks on the media, complain about fake news or mention spats with celebrities and other topics considered “off message.”
Stocks rose Monday as the Dow closed at a record high for a twelfth straight day, something it hasn’t done since Jan. 1987 when it ran off 13 straight record closes to start the year, according to Bespoke Investment Group.
The Dow Jones industrial average rose 15.68 points, or 0.1%, to 20,837.44. The Standard & Poor’s 500 index added 2.39, or 0.1%, to 2369.73 and the Nasdaq composite index gained 16.59, or 0.3%, to 5861.90.
Energy stocks led the gainers as the price of crude rose. Benchmark U.S. crude was up 20 cents, or 0.4%, at $54.15 a barrel in New York. The contract fell 46 cents on Friday.
Investors were looking ahead to President Donald Trump’s speech to Congress on Tuesday for details of promised tax cuts and infrastructure spending. U.S. stocks have benefited from Trump’s promise of pro-business changes, but investors are waiting to see how large and rapid those changes will be.
During a meeting with governors Monday, Trump noted that his upcoming budget would include a big boost to defense spending. The White House separately said that the budget would include a $54 billion increase in defense spending while imposing corresponding cuts to domestic programs and foreign aid.
Investors were also looking ahead to Trump’s speech Tuesday to a joint session of Congress for details of how he plans to carry out promises to cut taxes and step up infrastructure spending.
n Europe, Germany’s DAX rose 0.2%, while France’s CAC-40 was flat. London’s FTSE-100 added 0.1% Major indexes in Asia posted losses. Tokyo’s Nikkei 225 index fell 0.9%. Hong Kong’s Hang Seng slid 0.2%. Seoul’s Kospi shed 0.4%.
The Dow Jones industrial average capped off another profitable week by stretching its string of all-time closing highs to 11 sessions, its longest record-setting run since 1987.
A late-day rally propelled the Dow to its eleventh up day in a row and third straight week of gains, keeping alive the bullish vibe that has been in place since Feb. 9. Investors will quickly shift their focus to next week’s main event: President Trump’s key address to Congress Tuesday, a speech that Wall Street hopes will be laser-focused on his administration’s economic agenda.
The blue chip stock gauge, which has not finished down since Feb 8, has rallied nearly 770 points, or about 4%, in its hot streak. On Friday, after trading in negative territory for most of the day, it eked out a gain of 11.44 points to close at a record 20,821.76. The Dow’s 11-session winning streak matches a comparable run that ended back on Jan. 3, 1992, or 25 years ago.
More important, however, the Dow is chasing a string of 13 consecutive “record” closes dating back to Jan. 20, 1987
Wall Street is hoping that Trump will lay out in more detail his agenda of tax cuts for businesses and the middle class, as well as spending plans to upgrade the nation’s infrastructure. There is increasing concern among investors that Trump’s growth-friendly policies might not materialize fast enough to merit the sharp rise in stock prices.
Global equities are in virgin territory after Wall Street closed at another record amid a positive outlook for economic growth.
Political concerns leave the euro carrying the wooden spoon in the forex markets, while the broadly upbeat tone damps demand for sovereign bonds, pushing up yields.
The FTSE All-World equity index is at another record, up 0.2 per cent to 295,24, as investors are buoyed by signs of improvement in the global economy.
A batch of national and regional manufacturing and service sector surveys released on Tuesday provided the latest evidence that activity is picking up.
With US stocks making up about 50 per cent of the All-World, it is Wall Street that is the main driver of the global rally.
Stock indexes wavered between small gains and losses before ending mixed Thursday as investors sized up the latest company earnings news. Consumer goods and industrial stocks climbed the most, while health care and utilities were among the biggest laggards.
The Dow Jones industrial average climbed further above the 20,000 level it passed Wednesday. gaining 32 points, or 0.2% to 20,100.91.
Wall Street came off solid gains from the day before. The Dow Jones industrial average, after topping the magic 20K milestone and staying there, hit a record closing high along with the Nasdaq composite and the S&P 500.
On Thursday the Nasdaq slipped fractionally, losing just 0.02% to 5655.18. Off a little less than 0.1% was the S&P 500, now at 2296.68.
It’s been a record-making week on Wall Street. The S&P 500 index and Nasdaq composite closed at all-time highs on Tuesday and Wednesday. The Dow, which tracks 30 major industrial companies, added its own milestone Wednesday after it breached the 20,000 mark for the first time.
The market is getting a general boost from strong company earnings and investor optimism that the Trump administration’s policies on taxes, regulation and trade will be good for business.
Oil prices jumped as benchmark U.S. crude oil was up $1.07, or 2%, at $53.82 per barrel in New York. Brent crude, used to price international oils, was up $1.08, or 1.9%, at $56.50 a barrel in London.
Investor skittishness over coming policies under soon-to-be-president Donald Trump just days before his inauguration put stocks in the red Tuesday and pushed the Dow down for a third straight session.
Also haunting the market was another weak day for bank stocks, a sector that had performed strong at the start of the so-called “Trump rally” after Election Day but is running into profit taking. Shares of Morgan Stanley (MS) were down nearly 4% despite posting its best fourth-quarter since the financial crisis, while Goldman Sachs (GS) fell 3.3% and Citigroup (C) tumbled 2.1%.
The Dow Jones industrial average closed down 59 points, or 0.3%, to 19,827, or roughly 175 points shy of 20,000. At its low point, the Dow was down more than 110 points.
Markets were reacting to Trump comments in the Wall Street Journal suggesting that the U.S. dollar is “too strong” and could hurt U.S. multinationals. The president-elect also questioned an alternative tax reform plan being discussed by Republicans in the House of Representatives. A strong dollar hurts sales and earnings of U.S. companies that do a lot of business abroad.
Trump’s comments, not unlike some of his tweets that have caught investors by surprise on individual companies, created fresh uncertainty about what policies will actually be enacted once Trump takes office after Friday’s inauguration. Trump’s latest comments were viewed as new information by Wall Street.
The Standard & Poor’s 500 index closed down almost 7 points, or 0.3%, to 2267.89, while the Nasdaq composite fell 0.6% to 5538.73.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.329%.