33 Views

Dow closes above 23,000 for first time; IBM soars

© Reuters. Traders work on the floor of the NYSE in New York© Reuters. Traders work on the floor of the NYSE in New York

By Caroline Valetkevitch

NEW YORK (Reuters) – The Dow Jones Industrial Average closed above 23,000 for the first time on Wednesday, driven by a jump in IBM after it hinted at a return to revenue growth.

The Dow hit 22,000 on Aug. 2, only 54 trading days earlier and roughly half the time it took the index to move from 21,000 to 22,000. This marks the fourth time this year the Dow has reached a 1,000-point milestone.

“Retail investors continue to pour into the marketplace, and with each headline about a new record, and especially round numbers like that, people tend to feel like they’re missing out and you kind of suck more people into the market,” said Ian Winer, head of equities at Wedbush Securities in Los Angeles.

“Ultimately, the only way you’re going to top is by getting everybody all in. And we’re getting close.”

Investors globally pulled $33.7 billion from U.S. equity funds during the third quarter, according to Thomson Reuters’ Lipper research unit. The funds are on course to post net outflows for the full year.

Shares of IBM (N:IBM), which beat expectations on revenue, jumped 8.9 percent and accounted for about 90 points of the day’s 160 point-gain in the blue-chip index.

Solid earnings, stronger economic growth and hopes that President Donald Trump may be able to make progress on tax cuts have helped the market rally this year.

The S&P 500 and Nasdaq also hit record closing highs.

The Dow Jones Industrial Average (DJI) rose 160.16 points, or 0.7 percent, to end at 23,157.6, the S&P 500 (SPX) gained 1.9 points, or 0.07 percent, to 2,561.26 and the Nasdaq Composite (IXIC) added 0.56 point, or 0.01 percent, to 6,624.22.

“Today the catalyst is clearly IBM … which appears to have turned the corner. It gave the Dow the boost to stay over 23,000,” said Quincy Krosby, chief market strategist at Prudential Financial (NYSE:PRU) in Newark, New Jersey.

The Dow had briefly surpassed the all-time peak on Tuesday but closed just shy of it.

The financial index (SPSY) jumped 0.6 percent, led by bank stocks recovering from recent post-earnings losses. Bullish calls by brokerages helped to support the bank shares.

Bank shares had run up ahead of recent results, which resulted in some selling following the news, Krosby said.

Investors await news on Trump’s decision on the Federal Reserve chair position. The White House said Wednesday Trump will announce his decision in the “coming days.”

Abbott (N:ABT) rose 1.3 percent after the company’s profit beat estimates on strong sales in its medical devices business.

After the bell, shares of eBay (O:EBAY) fell 4 percent following its results.

Advancing issues outnumbered declining ones on the NYSE by a 1.09-to-1 ratio; on Nasdaq, a 1.32-to-1 ratio favored advancers.

About 5.6 billion shares changed hands on U.S. exchanges, below the 5.9 billion daily average for the past 20 trading days, according to Thomson Reuters data.

sponsoredArticle = ‘div-gpt-ad-1466339494851-0’;

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

Four dead in ambush of World Food Programme convoy in Nigeria
News
376 views
News
376 views

Four dead in ambush of World Food Programme convoy in Nigeria

SPFadmin - December 21, 2017

Four dead in ambush of World Food Programme convoy in Nigeria BAUCHI, Nigeria (Reuters) - Four people were killed when a United Nations World Food Programme (WFP)…

Trump says not considering firing U.S. special counsel Mueller
News
321 views
News
321 views

Trump says not considering firing U.S. special counsel Mueller

SPFadmin - December 21, 2017

© Reuters. FILE PHOTO: FBI Director Mueller testifies at a security threat hearing on Capitol Hill in Washington WASHINGTON (Reuters) - President Donald Trump, when asked on…

Diminished winds help California battle historic wildfire
News
311 views
News
311 views

Diminished winds help California battle historic wildfire

SPFadmin - December 21, 2017

© Reuters. Firefighters keep a close watch on the Thomas wildfire in the hills outside Montecito, California By Phoenix Tso VENTURA, Calif. (Reuters) - Calming winds on…

Chilean conservative Pinera seen winning presidency: media forecast
News
320 views
News
320 views

Chilean conservative Pinera seen winning presidency: media forecast

SPFadmin - December 21, 2017

© Reuters. Chilean presidential candidate Pinera with his grandchildren and his wife Morel speaks to the media after voting in a public school during the presidential election,…

Nuclear, renewables to help French CO2 reduction goals, Macron says
News
326 views
News
326 views

Nuclear, renewables to help French CO2 reduction goals, Macron says

SPFadmin - December 21, 2017

© Reuters. French President Macron and German Chancellor Merkel give a joint news conference in Brussels PARIS (Reuters) - French President Emmanuel Macron said on Sunday he…

U.S. Inflation Rebound Hasn’t Been the Right Kind for This Fed
Economy
387 views
Economy
387 views

U.S. Inflation Rebound Hasn’t Been the Right Kind for This Fed

SPFadmin - December 21, 2017

© Bloomberg. The Marriner S. Eccles Federal Reserve building stands in Washington, D.C., U.S., on Friday, Nov. 18, 2016. Federal Reserve Chair Janet Yellen told lawmakers on…

‘Ronaldo of finance ministers’ becomes new Eurogroup chairman
Economy
366 views
Economy
366 views

‘Ronaldo of finance ministers’ becomes new Eurogroup chairman

SPFadmin - December 21, 2017

© Reuters. Centeno, Portugal's Finance Minister and newly elected President of the Eurogroup, holds a news conference at the European Council in Brussels By Jan Strupczewski and…

Macron sees February end to fight against Islamic State in Syria
News
318 views
News
318 views

Macron sees February end to fight against Islamic State in Syria

SPFadmin - December 21, 2017

Macron sees February end to fight against Islamic State in Syria PARIS (Reuters) - The military campaign against Islamic State in Syria should be completed in February…

Oil prices stable on lower U.S. crude stocks, but rising output weighs
Commodities
321 views
Commodities
321 views

Oil prices stable on lower U.S. crude stocks, but rising output weighs

SPFadmin - December 21, 2017

© Reuters. A gas station attendant pumps fuel into a customer's car at a gas station in Shangha By Henning Gloystein SINGAPORE (Reuters) - Oil prices were…

Iran airs ‘confessions’ of researcher facing death for spying
News
143 views
News
143 views

Iran airs ‘confessions’ of researcher facing death for spying

SPFadmin - December 21, 2017

Iran airs 'confessions' of researcher facing death for spying By Bozorgmehr Sharafedin LONDON (Reuters) - Iranian state television broadcast on Sunday what it described as the confessions…