However, the tech-heavy index is still about 4% away from its record close. You have now viewed your allowance of free articles.
Advertisement
The Dow, which is made up of just 30 stocks, is an older and better-known barometer of the market than the S&P 500, but professional investors generally pay much closer attention to the S&P 500.
The Nasdaq also rose about 0.7 percent to close in positive territory for 2016. Britain’s FTSE 100 was up 0.2 percent to 6,695.74.
At 9:48 a.m. ET (1345 GMT), the Dow Jones Industrial Average was up 115.27 points, or 0.63 percent, at 18,342.2. The S&P 500 was up 11.55 points, or 0.54 percent, at 2,148.71.
Continued support from monetary policies across the developed world and strong economic data in the United States have given investors a reason to bid growth-sensitive sectors of the stock market.
A board on the floor of the NYSE shows the Dow at a new all time high after the closing bell at the New York Stock Exchange on Wall Street in New York City on July 12, 2016. Investors have been rattled by lower oil prices, falling corporate earnings, fears of possible interest-rate increases, slowing growth in China, and, most recently, the U.K.’s vote to leave the European Union. Shares of du Pont rose almost 2.7% yesterday.
Market analyst Colin Cieszynski said the recent surges in North American stock markets is being spurred by more perceived stability in the two major economies of Britain and Japan.
Utility companies rose more than the rest of the market, though, a sign that investors are cautious as they seek out the relative safety of steady dividend payers.
“There are no good alternatives, from an income standpoint, to the US equity markets at this point, and that’s driving the momentum today”, said US Bank Private Client Group chief investment officer. Cote notes that If in fact earnings are down as expected, it would be the first time since 2009 we have seen five consecutive quarters of year-over-year earnings declines. “I feel like a lot of people are getting themselves into situations that they can’t get out of”.
Alcoa reported a smaller-than-expected drop in quarterly profit, sending the aluminum producer’s shares up 4.7 percent and helping boost optimism about the earnings season.
Hard-disk drive maker Seagate jumped 21.8 per cent to US$29.35 (RM116.31) on strong preliminary results. It also announced that it will cut 6,500 jobs, about 14 percent of its total.
ENERGY: Benchmark U.S. crude added 77 cents to $45.53 a barrel in NY.
In Japan, Prime Minister Shinzo Abe ordered a new round of fiscal stimulus spending after an election victory. Investors are betting he’ll keep flooding the market with money by expanding bond purchases.
The S&P energy index.SPNY was last down 1.2 percent and the STOXX Europe 600 Oil & Gas index.SXEP ended 1 percent lower. USA crude settled up $2.04, or 4.56 percent, at $46.80.
Advertisement
US government bond prices fell. The yield on the 10-year Treasury note rose to 1.51 percent from 1.43 percent on Monday. Shares for the e-commerce site hit an all-time high mid-day but closed about 1 percent lower.
