Dow rises 133 points on better-than-expected earnings

Dow Erases Gains After Hitting 26,000 for 1st Time

Brad McMillan, chief investment officer for Commonwealth Financial Network, said the brief pullback after the Dow first cracked 26,000 on Tuesday was a healthy sign for the market.

In companies, among the notable gainers were Forward Industries Inc (NASDAQ:FORD), which added nearly 171% to US$3.36 after the company reported the acquisition of Intelligent Product Solutions.

- The Dow, a price-weighted index, is up 4.2 percent since the January 4 close, and up 5.6 percent since December 31.

Optimism over corporate earnings fueled the bullish sentiment as the reporting season started with JPMorgan Chase & Co. topping expectations and forecasting further gains thanks to cuts to the corporate tax rate. Causes of recent rises in stock prices Trump's recent tax cuts promise to increase the profits of most USA companies and also the temporary cuts for individuals may stimulate demand.

The Dow rose 332 points, or 1.3 percent, to 26,115.

The S&P 500 increased 26.14 points, or 0.94 per cent, to 2,802.56. The S&P 500 and Nasdaq were trading above previous record closing levels, as investors shrugged off fears of a potential government shutdown.

Ford Motor slumped 7 percent after the automaker gave a disappointing profit forecast for the year because of weaker sales in the USA, higher commodity costs and its investments in new electric and hybrid cars. The futures allow investors to make bets on the future price of bitcoin. The cost of a barrel finished the day at $63.90.

The Nasdaq is up 37.22 points, or 0.5 percent.

"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".

CURRENCIES: The dollar rose to 110.76 yen from 110.49 yen on Tuesday. Consumer staples rose 1.2% and healthcare added 1%. Gold futures edged higher and oil futures ( pulled back. Its shares added 85 cents to $44.92. Natural gas picked up 10 cents, or 3.3 percent, to $3.23 per 1,000 cubic feet. London's FTSE 100 shed 0.3 percent. Seoul's Kospi rose 0.7 percent. Hong Kong's Hang Seng rebounded from earlier losses to gain 0.3 percent.



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