MARKET SNAPSHOT: Dow Hits 23,000 As Banks, Health-care Earnings Come Into Focus
Dollar index rises for fourth straight session
The Dow Jones Industrial Average traded in record territory and broke through the psychologically important 23,000 level for the first time on Tuesday after modest gains as investors focused on a wave of key corporate earnings.
What are stock indexes doing?
The Dow recently traded up 40 points, or 0.2%, at 22,995, having hit a record at 23,002.20.
See:Dow 23,000 marks fresh history for blue chips (http://www.marketwatch.com/story/dow-23000-marks-fresh-history-for-blue-chips-2017-10-17)
The S&P 500 index traded flat at 2,558, with nine of the 11 main indexes trading lower. Health-care shares were among the best performing sectors, rising 1%. The broad-market S&P 500 had scored an intraday record at 2,559.47.
The Nasdaq Composite Index , meanwhile, edged 3 points, or less than 0.1%, higher to 6,627.
What's driving the markets?
Bank earnings and results from some of the biggest health-care companies were key drivers in early trading on Tuesday. As third-quarter earnings season kicks into high gear, investors will be focused on those results to gauge whether valuation for stock benchmarks, repeatedly registering all-time highs in 2017, is supported.
Meanwhile, the dollar got a boost from media reports out late Monday (https://www.bloomberg.com/news/articles/2017-10-16/taylor-is-said-to-impress-trump-for-fed-chairman-as-warsh-slips) indicating that Stanford University's John Taylor, the economist behind the famous "Taylor Rule," made a favorable impression on President Donald Trump last week.
Taylor is considered one of the more hawkish candidates in the running to become the next Federal Reserve chairman, and his "Taylor Rule" implies that interest rates should be a lot higher than they are now.
Read:Is the Fed chair race more wide open than portrayed? (http://www.marketwatch.com/story/trump-looking-at-a-lot-of-people-in-search-for-next-fed-chief-mnuchin-2017-10-13)
What do strategists say?
As the main indexes trading at or near all-time highs, Karyn Cavanaugh, senior market strategist at Voya Financial, said the uptrend in equities is underpinned by global growth.
"There is no euphoria among investors yet as bond flow are strong while there is still enough skepticism about stock gains. Instead, the market is climbing thanks to global growth that's been driving earnings," Cavanaugh said.
"As long as we continue to see European and emerging-market economies grow, there is no reason for corporate earnings not to rise as well and support the market," Cavanaugh said.
Which economic data are due?
The cost of imported goods jumped (http://www.marketwatch.com/story/us-import-prices-surge-07-in-september-2017-10-17)0.7% in September in the biggest gain in more than a year, led by fuel prices and industrial supplies. Excluding fuel, import prices rose a smaller 0.3%.
Industrial production in the U.S. rebounded in September (http://www.marketwatch.com/story/industrial-production-climbs-03-in-september-in-face-of-hurricane-headwinds-2017-10-17)after two straight declines, rising 0.3% in September, in line with expectations. Capacity utilization rose to 76% from 75.8% but remained below summer levels. Sentiment among home builders (http://www.marketwatch.com/story/home-builder-sentiment-jumps-to-five-month-high-as-industry-refocuses-on-buyers-2017-10-17) spiked in October after faltering over the summer.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
Which stocks are in focus?
Johnson & Johnson (JNJ) rose 2.2% and UnitedHealth Group Inc.(UNH) jumped 5.4% after both beat earnings forecasts.
Morgan Stanley(MS) shares rallied 2.2% after the Wall Street bank reported earnings that easily beat forecasts (http://www.marketwatch.com/story/morgan-stanleys-earnings-top-estimates-2017-10-17) as its wealth-management business continued to make reliable profits.
Goldman Sachs Group Inc.(GS) also beat forecasts, but shares were slightly lower.
See:Third-quarter earnings seen as 'an easy beat,' may bring more market records (http://www.marketwatch.com/story/third-quarter-earnings-seen-as-an-easy-beat-could-set-up-more-stock-market-records-2017-10-09)
Shares of Netflix Inc.(NFLX) fell 1% even as the streaming service late Monday reported stronger-than-forecast subscriber growth (http://blogs.marketwatch.com/thetell/2017/10/16/netflix-earnings-to-show-user-growth-ahead-of-subscription-price-increases-live-blog/)and revenue for the third quarter.
First Take:Netflix plans huge movie push as it faces post-Disney reality (http://www.marketwatch.com/story/netflix-plans-huge-movie-push-as-it-faces-post-disney-reality-2017-10-16)
Also read:Netflix aims for all-time high as analysts see high double-digit upside for shares after earnings (http://www.marketwatch.com/story/netflix-aims-for-all-time-high-as-analysts-see-high-double-digit-upside-for-shares-after-earnings-2017-10-17)
Boeing Co.(BA) shares were down 0.4% after rival aircraft maker Airbus (AIR.FR) took a 50.01% stake in Bombardier Inc.'s CSeries jets (http://www.marketwatch.com/story/bombardier-may-partner-with-airbus-on-cseries-jetliners-2017-10-16).
And after the market closes, International Business Machines Corp.(IBM) is slated to report.
What are other assets doing?
Asian stocks closed mostly higher (http://www.marketwatch.com/story/asian-market-rally-shows-signs-of-slowing-2017-10-16), but with Chinese stocks ending lower ahead of the Communist Party's congress later in the week. In Europe, indexes were mixed.
The ICE Dollar Index was up 0.3% at 93.545 in Tuesday's trade, while the yield of the 10-year Treasury note was at 2.30%.
Read:5 reasons why investors need to watch China's National Party Congress (http://www.marketwatch.com/story/5-reasons-why-investors-need-to-watch-chinas-national-party-congress-2017-10-13)
Metals slumped, with gold 0.9% lower. Crude oil rose 0.4%, after Iraqi forces took control of oil-rich fields in Kirkuk.
(END) Dow Jones Newswires
October 17, 2017 11:19 ET (15:19 GMT)