Hindustan Times (Jalandhar)

Dow breaches 26,000 mark on re­ports of ro­bust earn­ings

- Reuters feed­back@livemint.com n

NEW YORK: Wall Street’s main in­dexes rose sharply on Tues­day, with the Dow hit­ting the 26,000 mark for the first time, as the fourth-quar­ter earn­ings sea­son kicked into high gear.

Unit­edHealth rose 2.2% af­ter the largest US health in­surer re­ported re­sults that beat an­a­lysts’ es­ti­mates and raised its full-year profit fore­cast. Cit­i­group Inc. jumped 1.4% af­ter the lender re­ported profit that topped Wall Street ex­pec­ta­tions.

Hopes of strong quar­terly earn­ings, sup­ported by steep cut in cor­po­rate taxes, and solid global eco­nomic growth have bol­stered Wall Street’s op­ti­mism in the start to 2018.

“Not only is the US com­ing off a strong quar­ter, but the new tax re­form mea­sures are con­tin­u­ing to pro­vide a boost, with in­vestors keen to hear more about what im­pact this will have on fu­ture earn­ings,” said Craig Er­lam, se­nior mar­ket an­a­lyst at on­line for­eign ex­change bro­ker Oanda.

More than three quar­ters of the 26 S&P 500 com­pa­nies that have re­ported so far have topped profit es­ti­mates, ac­cord­ing to Thom­son Reuters.

The Dow Jones In­dus­trial Av­er­age was up 225.34 points, or 0.87%, at 26,028.53, help­ing it record its fastest 1000-point rise.

The S&P 500 was up 18.09 points, or 0.65%, at 2,804.33 and the Nasdaq Com­pos­ite was up 62.08 points, or 0.85%, at 7,323.14.

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