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Dow ends at record high as Wal-Mart surges on forecast

AFP  |  New York 

An upbeat forecast from Wal-Mart Stores lifted the Dow to a fresh record as US stocks finished modestly higher ahead of major earnings reports.

Wal-Mart surged 4.5 per cent yesterday after projecting fiscal 2019 sales would rise at or above three percent following a deeper push into e-commerce. The retail giant also announced a USD 20 billion share repurchase program.


The Industrial Average gained 0.3 per cent to 22,830.68, about 55 points above the record set last week.

The broad-based S&P 500 rose 0.2 per cent to 2,550.64, while the tech-rich Composite Index advanced 0.1 per cent to 6,587.25.

Investor sentiment remains strong amid expectations of a solid third-quarter reporting season that begins in earnest this week with from JPMorgan Chase, Delta Air Lines and others.

Investors are also excited about the prospects of President Donald Trump's cut proposal, although some press reports have emphasized that the plan faces a long road to passage.

The International Monetary Fund bumped up its forecast of US growth for both 2017 and 2018, but cautioned that growth would slow absent progress on growth-oriented economic policies from Washington.

Airlines rose solidly following financial updates from American Airlines and United Continental that suggested that the hit from canceled flights due to third-quarter hurricanes was not as great as feared. Both carriers rose more than four percent.

Procter & Gamble dipped 0.5 per cent after the consumer products giant claimed a narrow victory in its quest to block activist investor Nelson Peltz from its board of directors. Citing the closeness of the vote, Peltz refused to concede defeat and said he would wait until final are certified.

Pfizer advanced 0.8 per cent after announcing that it was considering a possible sales of its consumer healthcare division, which makes Advil, ChapStick and other leading over-the-counter products.

Honeywell International dipped 0.2 per cent after announcing plans to spin off divisions that focus on home heating and turbocharger transportation systems.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 11 2017. 03:22 IST
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