Dow surges 322 points, closes above 26,000 for first time
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 (NYSE:BA) and IBM (NYSE: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 (NYSE:ADNT) to create an exclusive supplier of high-end aircraft seats.
Shares of IBM, another Dow component, rose 2.9% after analysts at Barclays (NYSE:BCS) upgraded the stock to overweight from underweight.
UnitedHealth (NYSE:UNH) also continued to march higher, with shares up 2.4%. The health insurer on Tuesday beat Wall Street’s expectations for fourth-quarter earnings and raised its outlook for 2018, citing federal tax reform.