U.S. stocks mostly climbed on Wednesday,
with the Dow Jones Industrial Average notching another record close, as
investors bought into optimism that the Federal Reserve would continue
its stimulus longer than thought, ahead of economic reports this week on
the economy and the labor market.
Equities are doing well "under the belief that the Federal Reserve is willing to push tapering off a bit," said Robert Pavlik, chief market strategist at Banyan Partners LLC, of thinking the central bank would hold off on reducing its $85 billion in monthly asset purchases.
Equities are doing well "under the belief that the Federal Reserve is willing to push tapering off a bit," said Robert Pavlik, chief market strategist at Banyan Partners LLC, of thinking the central bank would hold off on reducing its $85 billion in monthly asset purchases.
After making a triple-digit jump to an intraday record of 15,750.29, the Dow Jones Industrial Average added 128.66 points, or 0.8 percent, to close at 15,746.88, easily clearing its record close of 15,680.35, set last Tuesday. Microsoft paced blue-chip gains, with the software company hitting a 12-year high and on pace for its largest yearly gain since 2009.
"Given we're in a bull market, so long as we don't have bad news, the market is going to creep higher," said Randy Frederick, managing director of active trading and derivatives at Charles Schwab. That said, "100-point moves on the Dow is a little much, just in the absence of bad news," said Frederick, who anticipates a bout of profit taking on Thursday.
The S&P 500 also rose, up 7.52 points, or 0.4 percent, to 1,770.49, less than 2 points from its record close, with telecommunications and utilities the best performing and consumer discretionary and health care the worst of the S&P's 10 major sectors.
Erasing gains, the Nasdaq declined 7.92 points, or 0.2 percent, to 3,931.95, hit along with Tesla Motors, its shares losing more than a quarter of their value a day after the electric-car maker reported a softer-than-anticipated quarterly profit, with third-quarter deliveries of its Model S also disappointing to some.
The CBOE Volatility Index (VIX), a gauge of uncertainty in the market, fell to 12.67.
"Given we're in a bull market, so long as we don't have bad news, the market is going to creep higher," said Randy Frederick, managing director of active trading and derivatives at Charles Schwab. That said, "100-point moves on the Dow is a little much, just in the absence of bad news," said Frederick, who anticipates a bout of profit taking on Thursday.
The S&P 500 also rose, up 7.52 points, or 0.4 percent, to 1,770.49, less than 2 points from its record close, with telecommunications and utilities the best performing and consumer discretionary and health care the worst of the S&P's 10 major sectors.
Erasing gains, the Nasdaq declined 7.92 points, or 0.2 percent, to 3,931.95, hit along with Tesla Motors, its shares losing more than a quarter of their value a day after the electric-car maker reported a softer-than-anticipated quarterly profit, with third-quarter deliveries of its Model S also disappointing to some.
The CBOE Volatility Index (VIX), a gauge of uncertainty in the market, fell to 12.67.
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