Dow Jones Spikes 1.3% on Strong Earnings

Dow Jones Spikes 1.3% on Strong Earnings

Maris Ogg of Tower Bridge Associates told AFP the sustained rally was boosted by a "confluence of good news", including strong company earnings, slashed corporate tax rates, higher worker compensation and new investment.

All 11 of the S&P 500's main indexes finished with firm gains. The S&P 500 Index closed at 2,802.56 for a gain of 26.14 points or 0.94%.

The Dow Jones Industrial Average fell 48.87 points, or 0.19 percent, to 26,066.78, the S&P 500 gained 0.69 points, or 0.02 percent, to 2,803.25 and the Nasdaq Composite added 11.43 points, or 0.16 percent, to 7,309.71.

The major indexes, which hit record highs Wednesday, wavered between small gains and losses for much of the day as investors continued to size up company earnings and economic data.

The tech index Nasdaq Composite also ended with an increase of 1%.

The Standard & Poor's 500 index rose 13 points, or 0.5 percent, to 2,790. Output climbed 0.9% from November, following a revised drop of 0.1% that was originally reported as a 0.2% gain, the Federal Reserve reported.

The Trump Effect Helps Democrats Pull Off a Surprise Win in Wisconsin
Adam Jarchow in Wisconsin's 10th Senate District on Tuesday, the latest in a recent series of Democratic victories nationwide. Some are hoping that the Democrat win in Wisconsin is a sign of a coming wave of Democrat wins in the 2018 midterm elections.

Stocks are moving higher on Wall Street as the market makes up some of the ground it lost a day earlier. IBM rose 2.9% after Barclays analysts upgraded the stock two notches to "overweight" and increased its price target by $59 to $192.

Alcoa tumbled 7 percent after the company reported a wider loss in the fourth quarter. Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown. This trend is expected to continue in the coming weeks as Wall Street's earnings recovery continues. Bank of NY Mellon and KeyCorp declined after their latest results disappointed traders.

The gold prices stayed around their highest 4-month levels, although a stronger dollar in the day made the precious metal more expensive for other currency holders.

The Dow is up 1,396.43 points, or 5.7 percent.

The Dow Jones industrial average rose 173 points, or 0.7 percent, to 25,966. Copper rose 1 cent to $3.20 a pound.

Industrial stocks rose after the Federal Reserve said U.S. industrial production increased 0.9% in December.

Related Articles