US: Dow ascends to record high and nears 22,000

[NEW YORK] The Dow Jones Industrial Average racked up a fifth straight record high on Tuesday and neared the 22,000 mark, powered by Goldman Sachs, JPMorgan Chase and other banks.

Apple rose 0.89 per cent as Wall Street awaited the largest publicly listed company's quarterly report after the bell, with the iPhone maker expected by analysts to post a 6-per cent rise in revenue.

The S&P 500 information technology index is up 22 per cent year to date, leading other sectors.

The Dow has risen 11 per cent in 2017, even as Wall Street loses confidence that President Donald Trump and a Republican-controlled Congress this year will cut taxes and increase spending on infrastructure.

"The market takes the good and immediately discounts the bad," said Jake Dollarhide, chief executive officer of Longbow Asset Management.

"It's an accomplishment, given that all of this has happened with the backdrop of no progress in Washington on anything."

With two thirds of S&P 500 companies having reported their second-quarter earnings, 72 per cent have beaten Wall Street's expectations, according to Thomson Reuters I/B/E/S. In a typical quarter, 64 per cent of companies beat expectations.

Those results may reassure investors worried about high valuations. The S&P 500 is trading at about 18 times earnings estimates for the next 12 months, above its 10-year average of 14 times, according to Thomson Reuters Datastream.

The Dow rose 0.33 per cent to a record-high close of 21,963.92. It pierced through the 20,000 milestone in January and the 21,000 mark barely one and a half months later.

The S&P 500 gained 0.24 per cent to 2,476.35 and the Nasdaq Composite added 0.23 per cent to 6,362.94.

The S&P financial index led with a gain of 0.81 per cent. JPMorgan Chase rose 1.34 per cent and Goldman Sachs added 0.74 per cent.

Economic data showed US consumer spending barely rose in June as income failed to increase for the first time in seven months.

Under Armour fell 10.38 per cent to a record low after the sportswear maker cut its full-year sales forecast.

Automaker Ford fell 2.41 per cent and General Motors lost 3.39 per cent after they reported lower monthly sales.

Sprint jumped 11.15 per cent after swinging to a quarterly profit for the first time in three years, while Xerox rose 5.84 per cent after its profit beat expectations.

About 6.2 billion shares changed hands in US exchanges, marginally above the 6.1 billion average over the last 20 sessions.

REUTERS