Dow Jones breaks through 26000 as USA stock rally takes hold again

Ivan Schwartz
January 17, 2018

Wall Street's rise has been largely fueled by strong corporate profits, global economic strength and Republican efforts to cut taxes and curb regulations.

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The Nasdaq fell 37.38 (-0.51 percent) to close at 7,223.69, while the S&P 500 finished trading at 2,776.42, down 9.82 (-0.35 percent) for the day.

- Boeing Co has been the index's largest percentage gainer since the January 4 close, adding more than a quarter of the last 1,000 points, with a rise of 13 percent.

The S&P financial index is up almost 5 percent to start the year. On Tuesday, a big chunk of the Dow's gains could be attributed to UnitedHealth Group (UNH) which was surging in the pre-market session after a big earnings and revenue beat.

Benchmark 10-year notes last rose 2/32 in price to yield 2.5462 percent, from 2.552 percent late on Friday.

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General Electric fell about 4 percent after raising the prospect of breaking itself up and announced more than $11 billion in charges from its long-term care insurance portfolio and new USA tax laws.

Merck, another Dow component, added 3.41, or 5.8%, to 62.07 after the drugmaker said a combination of its Keytruda treatment with chemotherapy extended survival of patients with lung cancer.

"There is really nothing in (the market's) way at this point", said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

"We're in the latter stages of this bull market, but the final stage could last another two or three years given the length of the run so far", says Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, N.C.

The tax cuts President Donald Trump signed into law in December are expected to bolster US economic growth further, keep the jobless rate low and support further stock gains, according to several analysts. Many investors still expect a pullback, "but this is a resilient market", he added.

Hong Kong's Hang Seng closed 1.8% higher, hitting a fresh record. SPDR Dow Jones Industrial Average ETF has a 1-year low of $196.69 and a 1-year high of $257.97.

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