Wednesday, 12 December, 2018

Dow Hits 26000 for First Time as Trump Market Rally Makes History

Nellie Chapman | 17 January, 2018, 01:46

The recent climb by USA stocks, spurred in part by synchronized global economic growth, has some investors wondering if there's too much short-term froth in the market.

SPDR Dow Jones Industrial Average ETF (DIA) traded up $2.59 during mid-day trading on Tuesday, hitting $260.50.

The Nasdaq fell 37.38 (-0.51 percent) to close at 7,223.69, while the S&P 500 finished trading at 2,776.42, down 9.82 (-0.35 percent) for the day.

The Dow Jones Industrial Average plowed past 26,000 as optimism over corporate earnings turbocharged the equity bull market. It had been up as much as 282 points earlier.

Paper and packaging group Smurfit Kappa was among the climbers, adding 0.8 per cent to €28.92, while Bank of Ireland added 1.1 per cent to €7.97.

Nine of the 11 major S&P sectors were higher, led by a 1.44 percent rise in the real estate index and 0.92 percent gains in the technology index.

Citi gained 0.4 per cent after reporting robust quarterly earnings despite booking a US$22 billion charge tied to last month's passage of a major USA tax overhaul. Many multinational corporations are taking one-off charges for bringing home money held overseas. "The only threat to the stock market right now is high interest rates".

General Electric Co.'s stock (GE) fell 3.2% after the conglomerate said a review of GE Capital's insurance portfolio would result in a $6.2 billion after-tax charge ( in the fourth quarter. The tumble follows a sharp jump in Viacom Friday after a published report suggested that a merger might be a possibility.

Gold rose $2.20 to $1,337.10 an ounce.

The British pound was essentially unchanged at percent to $1.3796.

West Texas Intermediate crude fell 0.6 percent to $63.94 a barrel, the first retreat in more than a week.

The blue-chip index, however, eased from its peak as a pullback in oil prices weighed on energy stocks. Range Resources was down 88 cents, or 5 percent, to $16.70.

Yellow Pages Ltd (Y.TO) advanced 0.7 per cent to $8.27 after the company, once well known for its thick-print directories, said it would fire about 500 employees to cut costs and turn around its digital advertising platform. Traders bid up shares in the drugmaker after it announced positive results from a clinical trial for a lung cancer treatment. Excluding the one-time charges, Citigroup earned a profit. The stock added 27 cents to $77.11. Patriot Wealth Management Inc. now owns 2,829 shares of the exchange traded fund's stock valued at $700,000 after buying an additional 300 shares during the last quarter.