The Dow, S&P 500 and Nasdaq all finished at new records on Wednesday.
The Dow Jones Industrial Average soared by 322 points on Wednesday, Jan. 17, finishing above 26,000 and setting a new record close. The S&P 500 and Nasdaq also finished at new record highs.
The Dow Jones Industrial Average rose 1.25% to finish at 26,115. Pacing the Dow’s gains were tech giants Intel Corp. (INTC – Get Report) , up 2.9%, International Business Machines Corp. (IBM– Get Report) , which gained 4.6%, and airplane maker Boeing Co. (BA – Get Report) , which closed 4.7% higher.
The S&P 500 rose 0.94% and the Nasdaq jumped 1.03%.
Shares of Apple Inc. (AAPL – Get Report) gained 1.6% Wednesday after the iPhone maker said it would invest $350 billion in the U.S. economy over the next five years and expects to create 20,000 new jobs.
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The Dow broke through 26,000 for the first time on Tuesday, Jan. 16, but ended the day with a small loss.
Bank of America Corp. (BAC – Get Report) , the second-biggest U.S. bank, said fourth-quarter profit tumbled 48% amid a slump in bond trading and as the new U.S. tax law triggered a slew of multibillion-dollar write-downs.
Net income fell to $2.37 billion. Earnings per share were 20 cents a share, including a charge of 27 cents a share related to the tax act. The adjusted figure of 47 cents a share compares with analysts’ estimates of 45 cents.
The stock pared earlier losses and was down 0.1%.
Goldman Sachs Group Inc. (GS – Get Report) , the Wall Street bank mired in a slump amid sluggish bond markets, posted a fourth-quarter loss of $1.93 billion, capping a dismal year for CEO Lloyd Blankfein that has led some analysts to call for his ouster.
The loss included a $4.4 billion expense for taxes on foreign earnings and other costs triggered by the new U.S. tax law passed in December. The bank posted a quarterly loss of $5.51. Excluding the tax charges, earnings per share were $5.68, exceeding analysts’ estimates of $4.92.
In bond trading, historically one of the bank’s biggest moneymakers, revenue tumbled 50% to $1 billion, the company said.
Goldman shares declined 1.9%.
The Financial Select Sector SPDR ETF (XLF – Get Report) rose 0.8% after falling earlier in the session.
Shares of Juno Therapeutics Inc. (JUNO – Get Report) jumped 51% on Wednesday following a report in The Wall Street Journal that said Celgene Corp. (CELG – Get Report) was in discussions to acquire the biotech company.
The Health Care Select Sector SPDR ETF (XLV – Get Report) gained 0.9%.
Ford Motor Co. (F – Get Report) fell 7% Wednesday after the automaker said it expects lower operating profit in 2018, reflecting higher commodity costs and adverse exchange rates which offset cost-cutting actions the company is taking.
For 2018, Ford guided to adjusted earnings of $1.45 to $1.70 a share.
CSX Corp. (CSX – Get Report) shares declined 0.7% after the railroad company reported better-than-expected earnings for the fourth quarter but didn’t meet revenue expectations.
In U.S. economic news, industrial production in December rose 0.9%, the fourth straight monthly increase, the Federal Reserve said.
In Europe, the Stoxx 600 index slipped 0.1% while Asian stocks ended the session mixed.
ASML NV (ASML – Get Report) , a Dutch supplier of tools and equipment for the semiconductor industry, jumped 6.8% and hit a record high after stronger-than-expected fourth-quarter earnings revived prospects to a renewed “supercycle” in global chip demand.
Global oil prices rose modestly softer Wednesday. West Texas Intermediate crude oil, the U.S. benchmark, rose 0.4% to $64.01 a barrel.
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