Published: Sat, January 20, 2018
Business | By Max Garcia

Dow surges 300 points, closes above 26000 for first time

Dow surges 300 points, closes above 26000 for first time

Stocks closed broadly higher Wednesday, sending the Dow Jones industrial average to its first close above 26,000 points. The Dow closed 10 points lower after rising as much as 283 points and breaking above 26,000 for the first time.

In another sign of optimism, Wall Street analysts are boosting their earnings forecasts for USA companies at the fastest pace in 10 years, according to Bespoke Investment Group.

The benchmark S&P 500 recorded a growth of 0.9% to 2802.14 points, with the industry sector being the strongest with an increase of over 1%.

IN GEAR: General Motors rose 1.9 percent after the automaker said it expects strong sales in North America and China will sustain its profit through the rest of this year. Per-share earnings are expected to rise 12.5 percent in the fourth quarter, while sales are expected to advance 7.2 percent, data compiled by Bloomberg show. Germany's DAX gained 0.1 percent and France's CAC 40 fell 0.1 percent.

The Dow and S&P 500 posted record closes on Wednesday, shaking off a sharp intraday reversal in the previous session.

On the losing front, PAVmed Inc (NASDAQ:PAVM) shed over 28% to US$1.82 as the company reported a public offering of stock. "If you look at year-to-date performance, you have the broad popular indices up roughly 3 [percent] to nearly 5 percent in two weeks' trading".

Ford tumbled 7.0% after the automaker reported full-year profit below estimates and provided a downbeat forecast.

USA crude added 24 cents to $63.97 per barrel on the New York Mercantile Exchange. Copper fell 3 cents to $3.19 a pound. Wholesale gasoline added 2 cents to $1.86 a gallon.

Elsewhere, Nucana PLC (NASDAQ:NCNA) rose over 61% to US$23.37 as the firm announced plans to begin a Phase 3 study of Acelarin in front-line advanced biliary tract cancer. The U.S. currency was up to 110.75 yen from 110.52 yen on Monday. Bitcoin futures on the Cboe Futures Exchange settled 19.9 percent lower at $11,055.

"But at the same time", he adds, "there is a danger that the US stock market could accelerate so quickly that it decouples from the economic fundamentals most analysts think now underpin it".

Gold rose $2.10 to $1,339.20 an ounce.

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