Investors send Dow to record
NEW YORK — Investors drove the Dow Jones industrial average to an all-time high Tuesday on expectations that the Federal Reserve will keep its economic stimulus program in place.
The Dow rose 111.42 points, or 0.7 percent, to 15,680.35. The Dow also got a big boost from IBM, which announced that it would buy $15 billion more of its own stock.
The Fed is in the middle of a two-day policy meeting at which it's expected to maintain its $85 billion worth of bond purchases every month. That program is aimed at stimulating economic growth by keeping borrowing rates very low. The Fed will announce its decision Wednesday afternoon.
“The expectation that the Fed remains clearly on hold is the catalyst for this march higher,” said Quincy Krosby, a market strategist at Prudential Financial.
IBM rose $4.77, or 2.7 percent, to $181.12, accounting for about a quarter of the Dow's gain.
The Standard & Poor's 500 index rose 9.84 points, or 0.6 percent, to 1,771.95, its seventh record high this month.
About half the companies in the S&P 500 have reported earnings for the third quarter. So far, most are doing better than investors expected. Companies in the index are forecast to log third-quarter earnings growth of 4.5 percent, according to data from S&P Capital IQ.
On Tuesday, Harris, a communications and information technology company, rose $3.36, or 5.7 percent, to $62.76 after bouncing back from a loss in the same period a year ago and posting a profit, despite a decline in government spending. Pfizer rose 51 cents, or 1.7 percent, to $31.25 after its earnings exceeded analysts' expectations.
The Nasdaq composite rose 12.21 points, or 0.3 percent, to 3,952.34.
The Nasdaq was hit with another glitch. Nasdaq indexes weren't updated from 11:53 a.m. to 12:37 p.m. because of a technical problem that was caused by human error, the exchange operator said in a statement. Trading of Nasdaq-listed stocks wasn't affected.
On Sept. 4, the Nasdaq had a brief outage in one of its quote dissemination channels, but trading wasn't disrupted. On Aug. 22 the exchange suffered a three-hour trading outage that was also attributed to problems with the exchange's price disseminating system.
Two economic reports came in relatively weak, which may have encouraged some investors by suggesting that any slowdown in the Fed's stimulus could be a ways off.
Retail sales fell 0.1 percent in September, the weakest showing since March, as auto sales dipped. Americans' confidence in the economy fell this month to the lowest level since April. People were worried about the impact of the 16-day partial shutdown of the U.S. government.
“The data that has been the most attractive to (stock) markets seems to be the data that maintains the status quo,” said Brad Sorensen, the director of market and sector analysis at the Schwab Center for Financial Research.
The yield on the 10-year Treasury note fell to 2.50 percent from 2.52 percent Monday.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- EPA says it won’t reguluate coal ash as hazardous waste
- Real estate union: Howard Hanna buys Langholz Wilson Ellis
- Asked about Cuban cigars’ availability, retailers point to trade embargo
- ExOne Co. moves solidify authority under CEO
- Treasury turns profit as it exits GM bailout
- Americans support strict rules for drones in poll
- Some in Western Pa. affected by Staples data breach
- Upscale Verano takes part in Buick’s success
- Pennsylvania jobless rate drops to 5.1 percent
- First Niagara to cut 200 jobs; Pittsburgh impact unclear
- Stock market closes 2nd best week of 2014