Dow cruises toward ninth straight record closing high

Bruno Cirelli
Agosto 5, 2017

With banks standing to benefit from higher interest rates, the S&P financial index rose 0.6 percent.

The Dow Industrials breached the 22 000 mark for the first time ever on Wednesday, boosted by a rally in Apple's shares.

Wall Street has shrugged off a recent failure by a Republican-controlled Congress to overhaul healthcare legislation as well as doubts about how easily President Donald Trump will be able to fulfill promises to cut taxes and increase infrastructure spending.

However, Tesla's 7.20 percent jump eased some pressure on the tech-heavy index after the luxury electric auto maker reported quarterly revenue that more than doubled. Separately, Clorox shares added 2.1% after the maker of consumer products such as liquid bleach and trash bags reported a climb in net profits for the latest quarter.

Two-thirds of S&P 500 companies have reported their second-quarter earnings so far and 72 percent of them have beaten Wall Street's expectations, according to Thomson Reuters I/B/E/S.

The results may reassure investors anxious about high valuations.

Quarterly earnings remain in the spotlight to see if valuations are justified, especially with the S&P 500 trading at around 18 times earnings estimates for the next 12 months, well above its long-term average of 15 times.

Britain's FTSE index .FTSE, up 0.85 percent, led the charge in overseas markets and sterling skidded to its lowest since November 2 at 90.48 pence per euro EURGBP= after the Bank of England kept rates at a record low and cut its forecasts for growth and wages due to Brexit uncertainty.

Data showed US private employers added 178,000 jobs in July, after adding 191,000 jobs in June.

The Dow also traded near 22,000. Economists polled by Reuters expected an addition of 185,000 jobs. The more comprehensive non-farm payrolls report is due on Friday.

US -listed shares of Israeli drugs company Teva slumped 18.08 percent after it reported a steeper-than-expected drop in second-quarter earnings and cut its interim dividend.

Humana rose 3.53% as the health insurer reported a better-than-expected quarterly profit.

Advancing issues outnumbered decliners on the NYSE by 1,348 to 1,343. Markets in Italy .FTMIB, up 1 percent, and France .FCHI, up 0.5 percent, advanced although German stocks dipped .GDAXI 0.2 percent.

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