Dow Jones Hits New Record After Brief Stint at 23,000
The Dow Jones Industrial Average rose to New records Tuesday, powered by stronger than expected earnings for major health blue chips.
Dow Touches 23,000 In Intraday Trade
The blue-chip index briefly traded above 23,000 before paring gains to settle a mere three points shy of the milestone. The index rose 0.2% to 22,997.44 for a new all-time record.
Sixteen of the Dow’s 30 index members contributed to the rally. UnitedHealth Group (UNH) and Johnson & Johnson were the best performers after each reported earnings that beat forecasts.
On the opposite side of the ledger, Goldman Sachs (GS) shed 2.6% despite posting better than expected Q3 results.
With the gain, the Dow has now finished in positive territory in 12 of the past 15 sessions. Over that period, it has added 3.2%.
The broader S&P 500 Index also climbed to new highs Tuesday, adding 0.1% to finish at 2,559.36. Health stocks led the gains, climbing 1.3% as a sector.
Meanwhile, the tech-driven Nasdaq Composite Index pared losses to settle flat at 6,623.66.
However, the gains on Tuesday were accompanied by a mild increase in volatility, with the CBOE VIX settling in the double digits for the first time in a week.
Economic Data Largely Positive
The latest batches of industrial production and housing data painted a favorable picture of the U.S. economy. Industrial production – the broadest measure of factory output – rose 0.3% in September, the Federal Reserve reported Tuesday. Analysts had forecast an increase of 0.2%.
A closely watched measure of housing market conditions also strengthened more than expected this month. The National Association of Home Builders’ housing market index climbed four points to 68 for October. That was the highest level in five months.
Upbeat data helped the U.S. dollar notched its fourth consecutive gain on Tuesday. The U.S. dollar index (DXY) climbed 0.2% to 93.51.
The dollar strengthened against the pound and euro, while paring gains versus the yen and loonie.
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