Dow Closes Above 20,000 Amid Broad Based Strength - U.S. Commentary

(RTTNews) - Stocks showed a notable upward move during trading on Wednesday, adding to the gains posted in the previous session. With the continued strength, the Dow climbed above 20,000 for the first time, while the Nasdaq and the S&P 500 also reached new record closing highs.

The major averages closed firmly in positive territory, just off their highs of the session. The Dow climbed 155.80 points or 0.8 percent to 20,068.51, the Nasdaq jumped 55.38 points or 1 percent to 5,656.34 and the S&P 500 advanced 18.30 points or 0.8 percent to 2,298.37.

The strength on Wall Street came as stocks continued to benefit from optimism about U.S. economic growth under new President Donald Trump.

Trump has signed several executive orders designed to boost the economy, including orders reviving the controversial Keystone XL and Dakota pipeline projects.

The president signed an order today directing federal funds to be used to begin construction of a wall on the U.S. border with Mexico, although he has repeatedly claimed Mexico will reimburse U.S. taxpayers.

Buying interest was also generated in reaction to earnings news from companies such as aerospace giant Boeing (BA).

Boeing advanced by 4.2 percent after reporting fourth quarter results that exceeded analyst estimates on both the top and bottom lines.

Chip maker Texas Instruments (TXN) also posted a notable gain after reporting fourth quarter earnings and revenues that rose year-over-year and best analyst estimates.

Meanwhile, shares of Alcoa (AA) moved to the downside after the aluminum producer reported fourth quarter earnings that came in below expectations despite better than expected revenues.

Sector News

Computer hardware stocks showed a substantial move to the upside on the day, driving the NYSE Arca Computer Hardware Index up by 3.7 percent. With the jump, the index reached its best closing level in almost two years.

Hard disk maker Seagate Technology (STX) led the hardware sector higher, spiking by 14 percent after reporting better than expected second quarter results.

Significant strength was also visible among railroad stocks, as reflected by the 2.2 percent gain posted by the Dow Jones Railroads Index. The index also reached its best closing level in almost two years.

Banking, housing, oil service, and telecom stocks also saw considerable strength on the day, moving higher along with most of the other major sectors.

On the other hand, gold stocks bucked the uptrend, resulting in a 1.7 percent drop by the NYSE Arca Gold Bugs Index. The weakness in the sector came as gold for February delivery fell $13 to $1,197.80 an ounce.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.4 percent, while Hong Kong's Hang Seng Index rose by 0.4 percent.

The major European markets also moved to the upside on the day. While the German DAX Index surged up by 1.8 percent, the French CAC 40 Index advanced by 1 percent and the U.K.'s FTSE 100 Index edged up by 0.2 percent.

In the bond market, treasuries moved steadily lower over the course of the trading session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed by 5.2 basis points to 2.523 percent.

Looking Ahead

Trading on Thursday may be impacted by reaction to reports on weekly jobless claims, new home sales, and leading economic indicators.

On the earnings front, AT&T (T), eBay (EBAY), Qualcomm (QCOM), and Western Digital (WDC) are among the companies releasing their quarterly results after the close of today's trading.

Bristol-Myers Squibb (BMY), Caterpillar (CAT), Comcast (CMCSA), Dow Chemical (DOW), Ford (F), and Southwest Airlines (LUV) are also due to report their results before the start of trading on Thursday.