Dow Jones Breaches 22,000, Re­treats

Ap­ple Inc hits all-time high on strong re­sults, iPhone sales

The Economic Times - - Money -

New York: The Dow breached the 22,000mark­briefly­in­ear­ly­tradin­gon Wed­nes­day, pow­ered by Ap­ple’s stel­lar re­sults, be­fore stocks re­treated sharply across sec­tors as in­vestors locked in gains. Ap­ple jumped as much as 6.46% to a record high, af­ter the world’s largest pub­licly listed com­pany re­ported strong re­sults and iPhone sales, and sig­naled its up­com­ing 10th-an­niver­sary phone is on sched­ule. Mi­crosoft and Face­book were among the top drags on both the S&P and the Nasdaq. How­ever, the S&P 500 in­for­ma­tion tech­nol­ogy in­dex is up about 22% year to date, lead­ing other sec­tors, as in­vestors look for growth in an other-wise low-growth en­vi­ron­ment.

“Typ­i­cally at those big round num­bers the mar­ket seems to hes­i­tate ... I’m look­ing at this as a sit­u­a­tion where the un­der­ly­ing ev­i­dence as to why the stock mar­ket has re­sponded well is the fer­tile cli­mate for cor­po­rateprof­itswhichis­like­ly­tore­main,” said Mark Lus­chini, chief in­vestme n t strate­gist at Jan­ney Mont­gomery Scott. The Dow has risen 11% in 2017, even as Wall Street is los­ing con­fi­dence that Pres­i­dent Don­ald Trump and a Re pub­li­can-con­trolled Congress would be able to cut taxes and in­crease in­fras­truc­ture spend­ing this year.

The Dow hit the 20,000 mark in late Jan­uary and crossed the 21,000 mark in just over a month on March 1.

Two-thirds of S&P 500 com­pa­nies have re­ported their sec­ond-quar­ter earn­ingsso­farand72%of themhave beaten Wall Street’s ex­pec­ta­tions. In a typ­i­calquar­ter,64%of the­com­pa­nies beat ex­pec­ta­tions. Data showed US pri­vate em­ploy­ers added 178,000 jobs in July, af­ter a dding 1 9 1 , 0 0 0 j o bs i n June. Econ­o­mists polled by Reuters ex­pected an ad­di­tion of 185,000 jobs. The data comes ahead of the more com­pre­hen­sive non-farm pay­rolls data on Friday.

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