Stocks rising in midday trading as Dow hits record high
In this Friday, Nov. 13, 2015, file photo, the American flag flies above the Wall Street entrance to the New York Stock Exchange. Stocks are opening solidly higher on Wall Street, Tuesday, July 12, 2016, putting the market on track for another milestone. The Dow Jones industrial average was trading above its previous record high close in early trading. That came a day after the Standard & Poor's 500 index closed at its own record high.
Stocks are rising in midday trading Tuesday, putting the market on track for another milestone. The Dow Jones industrial average is trading above its record close a day after the broader Standard & Poor's 500 index ended at a new high. The Nasdaq composite turned slightly positive for the year.
KEEPING SCORE: The Dow rose 123 points, or 0.7 per cent, to 18,349 at 12:07 p.m. Eastern time. That is 37 points higher than its closing high in May last year. The S&P 500 gained 17 points, or 0.8 per cent, to 2,154. The Nasdaq rose 39 points, or 0.8 per cent, to 5,028.
PROFIT PICTURE: Aluminum maker Alcoa kicked off the second quarter earnings season on a positive note by reporting revenue and earnings that beat Wall Street expectations. The stock jumped 48 cents, or 5 per cent, to $10.62. Earnings for the all of the S&P 500 is expected to fall compared to the year ago period, but then rise in the next quarter.
SEAGATE SURGE: Seagate Technology surged $5.18, or 22 per cent, to $29.27 after forecasting strong sales. It also announced it will cut 6,500 jobs, about 14 per cent of its total.
JAPAN JUMPS: Tokyo's Nikkei 225 index jumped 2.5 per cent, a day after soaring 4 per cent. Prime Minister Shinzo Abe has promised new government spending to help jolt Asia's second-biggest economy back to life now that his Liberal Democratic Party has won in parliamentary elections. Investors are betting he'll keep flooding the market with money by expanding bond purchases.
THE QUOTE: "The combination of very low interest rates and modest earnings going forward and supportive central banks and now some indication of fiscal stimulus in Japan — the third largest economy — this is a mix that stock investors can support," said James Russell, portfolio manager at investment firm Bayle & Gaynor. "Investors are heartened."
ENERGY BOOST: Oil drillers and other energy companies are rising on a jump in oil prices. Six of the 10 biggest gainers in the S&P 500 are in the energy sector. Southwestern Energy was the biggest gainer in the S&P 500, soaring $1.47, 11 per cent, to $14.37.
ASIAN GAINS: South Korea's Kospi edged up 0.1 per cent and Hong Kong's Hang Seng added 1.7 per cent. Australia's S&P/ASX 200 rose 0.3 per cent.
EUROPEAN GAINS: France's CAC 40 rose 1.6 per cent and Germany's DAX added 1.3 per cent. Britain's FTSE 100 was flat.
POKEMON POWER: Shares of Nintendo Co. jumped 12.7 per cent in Tokyo, fueled by the craze for "Pokemon Go," a smartphone game that's become the top grossing app in the iPhone store less than a week after its release in the U.S., Australia and New Zealand.
ENERGY: Benchmark U.S. crude added $1.86 to $46.62 a barrel in New York. Brent crude, a standard for international oil prices, rose $1.99 to $48.24 a barrel in London.
BONDS AND CURRENCIES: U.S. government bonds fell, pushing yields higher. The yield on the 10-year Treasury note rose to 1.51 per cent from 1.43 per cent on Monday. The dollar inched up to 104.79 yen from 102.77 yen. The euro rose to $1.1076 from $1.1058.
- Editor:Albert | Source: The Associated Press
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