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Overnight Markets: Dow closes above 26,000 for the first time

Overnight Markets: Dow closes above 26,000 for the first time

Wall Street registered a broad rally on Wednesday, with the Dow Jones Industrial Average closing above 26,000 for the first time, following the release of stronger-than-expected quarterly results from some of the biggest US companies.

The Dow rose 323 points, or 1.25%, to 26,116. The bourse also hit an all-time high in intraday trading.

The S&P 500 gained 26 points, or 0.94%, to 2,803 - a record closing high - with staples and tech rising more than 1%. The Nasdaq Composite added 75 points, or 1.03%, to 7,298.

Technology and healthcare companies accounted for much of the gains. Financials stocks also rose, even as some big banks fell after reporting hefty quarterly losses.

Tech stocks got a boost from Apple, which erased losses after announcing plans to repatriate billions in overseas cash. The stock closed 1.7% higher. IBM rose 2.9% after Barclays analysts upgraded the stock two notches to “overweight” and increased its price target by $59 to $192.

Banks seesawed as Goldman Sachs and Bank of America reported disappointing results. Bank of America was down 0.2% percent after a $2.9 billion one-time tax charge nearly halved its reported profit.

Goldman Sachs fell 1.9% after posting its first quarterly loss in six years on tax-related charges and a sharp drop in trading revenue.

Investors also bid up healthcare stocks, including Anthem. The insurer added 3.1%. Juno Therapeutics soared 51.9% after the Wall Street Journal reported that biotech drugmaker Celgene might buy it.

Industrial stocks rose after the Federal Reserve said US industrial production increased 0.9% in December. Boeing jumped 4.7% after the company announced a joint venture with car seating leader Adient to make aircraft seats.

However, General Electric slipped 4.7%, extending losses from Tuesday, when it announced more than $11 billion in charges.

Ford tumbled 7.0% after the automaker reported full-year profit below estimates and provided a downbeat forecast.

In Asia, shares bounced back on Thursday in morning trade from declines in the last session, tracking substantial overnight gains on Wall Street.

Tokyo's benchmark Nikkei 225 index rose 0.44% in early trade. In Seoul, the Kospi tacked on 0.21%. Over in Sydney, the S&P/ASX 200 traded higher by 0.02%.

In Greater China, the Hang Seng Index was up 0.42%, while Shanghai Composite Index on the mainland added 0.41%.

 

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