By Victor Reklaitis and Anora M. Gaudiano, MarketWatch
S&P 500, Nasdaq, Russell 2000 set intraday all-time
highs
The Dow Jones Industrial Average surged to trade in record
territory and above the 26,000 level for the first time while other
benchmarks set all-time highs as quarterly earnings reports and
economic data continued to fuel optimism on Wall Street.
What are the benchmarks doing?
The Dow Jones Industrial Average rose 250 points, or 1%, to
26,056, with 25 of its 30 components trading higher. Merck & Co
Inc.(MRK) and UnitedHelath Group Inc(UNH) were leading gains, up 5%
and 2% respectively.
The S&P 500 advanced 20 points, or 0.7%, to 2,805 with nine
of the 11 main sectors trading higher. Real estate, technology and
consumer-discretionary shares led the gains.
The Nasdaq Composite rose 58 points, or 0.8%, to 7,319.
The Russell 2000 index of small companies rose 8 points, or
0.5%, to 1,600.
All main indexes hit intraday all-time highs shortly after the
opening bell.
Check out:This epic stock-market rally will get a second wind
from stellar earnings
(http://www.marketwatch.com/story/this-epic-stock-market-rally-will-get-a-second-wind-from-stellar-earnings-2018-01-13)
What is driving markets?
The three major equity benchmarks have risen between 23% and 31%
over the past 12 months, helped by factors such as an expanding
U.S. economy, growth in corporate profits and enthusiasm over
President Donald Trump administration's business-friendly policies,
including tax cuts.
The Empire State manufacturing survey
(http://www.marketwatch.com/story/empire-state-factory-gauge-softens-a-bit-in-january-2018-01-16)
slipped to 17.7 in January from a revised 19.6 in December, the New
York Fed said. Economists had expected activity to inch up to 18.6,
according to a survey by Econoday.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
On the Federal Reserve front, no officials are slated to give
speeches on Tuesday.
What are strategists saying?
"Optimism on Wall Street is pretty high as a lot of previously
skeptical and bearish investors have turned into stock market fans
lately," said Brett Schutte, chief investment strategist at
Northwestern Mutual Wealth Management Co.
"But there are reasons for optimism as we have great economic
background, growing earnings and still low inflation," Schutte
said.
The S&P 500 "has gained an impressive 4.2% in the new year
as its uptrend has steepened," said Katie Stockton, BTIG's chief
technical strategist, in a note.
"We are looking for a pullback in the 4%-5% range into February.
This would be a welcome development, because it would alleviate the
market of overly bullish sentiment without likely taking a toll on
positive long-term momentum."
Which stocks are in focus?
UnitedHealth Group Inc.'s stock (UNH) was up 1.2% after the
insurer posted quarterly earnings and revenue that topped
expectations.
Citigroup Inc.'s (C) reported a loss in the fourth quarter, as
its earnings were wiped out by a $22 billion charge related to the
new tax law. Shares were trading 1.9% higher.
Shares of Merck & Co.(MRK) jumped 6% after the company
announced positive results
(http://www.marketwatch.com/story/merck-shares-jump-3-on-news-of-positive-results-from-lung-cancer-trial-2018-01-16)in
a late-stage lung cancer trial.
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
(http://www.marketwatch.com/story/ges-stock-sinks-after-unveiling-62-billion-charge-in-q4-2018-01-16)
in the fourth quarter.
Shares in Ford Motor Co. (F) rose 1%, after the auto maker
teased an all-electric SUV
(http://www.marketwatch.com/story/ford-teases-all-electric-mach-1-suv-coming-in-2020-2018-01-14)
-- the "Mach 1" -- on Sunday, saying it will spend $11 billion on
electric cars through 2022. Ford made the announcement at the North
American International Auto Show in Detroit.
Also at the Detroit event, Fiat Chrysler Automobiles
NV(FCA.MI)(FCA.MI) CEO Sergio Marchionne said Monday he has no
plans to sell its Jeep business or split up the company
(http://www.marketwatch.com/story/fiat-chrysler-ceo-rules-out-split-jeep-sale-2018-01-16),
cooling speculation but leaving the company's long-term strategy
unclear. Shares were down 2.8%.
Energy giant BP PLC(BP.LN) (BP.LN) said Tuesday it expects to
book a $1.7 billion post-tax charge
(http://www.marketwatch.com/story/bp-to-book-17-billion-deepwater-horizon-charge-2018-01-16-34853027)
in its fourth-quarter earnings for claims associated with the 2010
Deepwater Horizon blowout. BP's U.S.-listed shares were down
2.4%.
Shares of Viacom Inc.(VIA) fell 3.7% after The Wrap on Friday
reported that Shari Redstone, president of National Amusements,
which owns controlling interests in Viacom and CBS Corp. (CBSA) was
reengaging the two media companies in talks to merge.
What are other markets doing?
The ICE U.S. Dollar Index , which measures the buck against a
basket of six rivals, was up 0.3% from Monday's level to 90.73,
paring its year-to-date loss to 1.5%.
Bitcoin's spot price
(http://www.marketwatch.com/story/bitcoin-tumbles-to-6-week-low-as-top-cryptocurrencies-all-sell-off-2018-01-16)
was down sharply to a six-week low, as the top cryptocurrencies all
sold off. European equities
(http://www.marketwatch.com/story/european-stocks-head-higher-as-euro-pulls-back-2018-01-16)
and Asian markets
(http://www.marketwatch.com/story/asian-stocks-bounce-back-hang-seng-aims-for-a-record-2018-01-16)
have scored gains. Gold futures were little changed, and oil
futures
(http://www.marketwatch.com/story/oil-pulls-back-from-3-year-high-with-brent-below-70-2018-01-16)
were pulling back.
(END) Dow Jones Newswires
January 16, 2018 10:08 ET (15:08 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.