The Dow Jones Industrial Average is surging ahead in full speed and in the process has broken past the 25,000-mark for the first time.
Other major indexes are also bullish and in the blue towards new highs after a strong private jobs report – the ADP National Employment Report – revealed that US private employers added 250,000 jobs in December beating economists’ forecast of 190,000 job additions. Another factor that is helping the bullish trend is affirmation by Federal Reserve on the view of gradual interest rate hikes this year.
At 9:37 a.m. ET (1437 GMT), the Dow Jones Industrial Average was up 93.26 points, or 0.37 percent, at 25,015.94 and the S&P 500 was up 9.54 points, or 0.35 percent, at 2,722.6. The Nasdaq Composite was up 31.71 points, or 0.45 percent, at 7,097.24.
Manufacturing and services sector around the world are also on a high and this has led major stock exchanges around the world to also show a bullish trend. Seven of the 11 major S&P sectors were higher, led by gains in the financial index.
Wells Fargo rose about 2 per cent, JPMorgan 1.3 per cent and Goldman Sachs 1 per cent, as the strong data raised the odds of further rate hikes.
Shares of department store operators J.C. Penney and Macy’s were down more than 5 percent after the companies reported same-store sales during the key selling months of November and December.
Tesla’s shares slipped 2.7 percent after the electric car maker delayed a production target for its new Model 3 sedan for the second time.
Sprint shares fell about 5 percent after the wireless carrier appointed former Altice NV Chief Executive Michel Combes as chief financial officer.
Victoria’s Secret-owner L Brands slid 13 percent on disappointing quarterly earnings forecast.
Advancing issues outnumbered decliners on the NYSE by 1,820 to 736. On the Nasdaq, 1,787 issues rose and 638 fell.