Market experts weigh in on what has been driving the
markets and the Dow closing above 26,000 for the first time.
The Dow closed above 26,000 for the first time in its
history, as bank earnings, Boeing (BA) and
IBM (IBM)
drove the blue-chip index higher Wednesday.
The Dow Jones Industrial Average surged 322 points to
26,115. The S&P 500 and Nasdaq Composite also hit all-time highs. The
S&P 500 advanced 26 points to 2,802. The Nasdaq gained 74 points to 7,298.
An early rally Tuesday morning pushed the Dow past
26,000, clinching the fastest 1,000-point climb for the Dow. Although Wall
Street pared its gains later in the session, the rally picked back up a day
later.
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.
“With the economy growing at a healthy rate, with
corporate earnings rising, and with the Fed still stimulating, there is simply
no trigger for a pullback,” McMillan wrote in a note to clients. “Even if we
did get a pullback, as we did in early 2016, it would be unlikely to last, and
for the same reasons.”
On Wednesday, Boeing jumped 4.7% on news that the
aircraft maker will partner with automotive supplier Adient (ADNT)
to create an exclusive supplier of high-end aircraft seats.
Shares of IBM, another Dow component, rose 2.9% after
analysts at Barclays (BCS)
upgraded the stock to overweight from underweight.
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Apple to add 20K jobs, pay $38B US tax bill
to repatriate cash
Committee for a Responsible Federal Budget Senior Vice
President Marc Goldwein explains why, although the economy is reacting
positively to tax cuts, the national debt that was exponentially increased by
the bill could hinder growth.
Apple (AAPL)
on Wednesday said it will create 20,000 new jobs and establish a new U.S.-based
campus as part of $350 billion in new "direct contribution" to the
economy.
Apple also said it expects repatriation tax payments of
roughly $38 billion due to changes enacted by the recently-passed GOP tax
reform bill. The new tax code calls for a 15.5% repatriation tax rate. The
company listed $252.3 billion in overseas cash in its most recent filing with
the SEC.
“The company plans to establish an Apple campus in a new
location, which will initially house technical support for customers. The
location of this new facility will be announced later in the year,” the company
said in a statement.
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I promised that my policies would allow companies like
Apple to bring massive amounts of money back to the United States. Great to see
Apple follow through as a result of TAX CUTS. Huge win for American workers and
the USA!
______________
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ANOTHER ARTICLE:
Dow soars 323 points, scores first close
above 26,000
By Associated Press
Specialist
Michael Pistillo wears a “Dow 26,000” hat as he works on the floor of the New
York Stock Exchange on Wednesday. Richard
Drew — Associated Press
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A broad rally on Wall Street propelled the Dow Jones
industrial average to close above 26,000 points for the first time Wednesday.
The sharp gains also delivered record highs for the
Standard & Poor’s 500 index and the Nasdaq composite, wiping out the
market’s modest losses from a day earlier.
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Investors have been encouraged by strong global growth,
rising company earnings and the prospects for further corporate profits thanks
to the tax overhaul signed into law last month, which cut the top tax rate for
corporations from 35 percent to 21 percent.
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