The blue-chip index raced to a new record breaking 25,000 gaining 1,000 points in 23 trading days a record in its 132-year history; defying naysayers who expect this bull run to flag soon. Both large cap and small cap stocks added gains as continued global economic growth fans investor enthusiasm. ADP Research released data on Thursday showing private sector emploment added 250,000 in December last year.
The Dow opened with a burst and by close added 152 points or +0.61% at 25,075.13 led by advances in General Electric up +2.09% and DowDuPont up +1.92%. The S&P 500 closed up +0.40% to 2,723.99 with only two sectors - utilities and real estate making losses. NASDAQ was up +0.16% after breaking 7,000 for the first time yesterday.
Financials were the market's strongest performers American Express rose +1.66% and JPMorgan Chase +1.43%. Discipline helped oil prices to rise to a three-year high as US crude stockpiles declined 7..4 million more than the consensus analysts' figure of 4.7 million barrels. The cold snap along the US' East Coast have seen electricity prices soar and a record increased demand for natural gas Inclement weather and intense cold could hang around for longer which could disrupt refinery operations.
4:22 PM EST
- Dow 25,075.13 +0.61%
- S&P 500 2,723.99 +0.40%
- NASDAQ 7,077.91 +0.18%
- Russell 2000 1,555.72 +0.20%
- NYSE Composite 13,028.47 +0.55%
- Gold 1,324.1 +0.42%
- Oil WTI $61.91 +0.47% (4:15PM EST)
- 10-Year Treasury 2.452 -0.01%
Middle East tensions with anti-government demonstrations over the last week in Iran are also ramping up worries that supply from oil exporters may be interrupted. West Texas Intermediate oil for February delivery went up 0.47% to $61 per barrel. Gold also rose 0.42% to $1,324 an ounce.
News on Wednesday of a design flaw present in computer chips that exposed most of our computer devices (from smartphones through to personal computers) to hackers accessing and stealing personal data impacted Intel's share price.
The chip-making company slid -1.83% in trading even as competitors Advanced Micro Devices surged +4.94% and Nvidia was up +0.53%. Marketwatch reported that AMD said there was "zero chance" its chips could be affected.
Out of pot luck?
The cannabis industry would not have been ready for Attorney General Jeff Sessions latest move. Via a one-page memo, the AG takes a hard line and rescinds Obama-era policies that protected industry players from enforcement of the federal law and prosecutions. The memo addressed to all US Attorneys states "that previous nationwide guidance specific to marijuana enforcement is unnecessary and rescinded, effective immediately."
Industry insiders viewed Sessions as a minor risk believing his well-known antipathy towards marijuana was not a priority. The timing coincides with California's recent entrance at the beginning of the year into the legalised marijuana market although the Department of Justice claim unawareness of any link to the timing.
The pushback was immediate. The Attorney General for Colorado, which has allowed recreational adult use since 2012, issued a statement saying it wasn't going to alter its approach to prosecuting marijuana crimes. Colorado's Senator Cory Gardner tweeted that he was "prepared to take all necessary steps...until the Attorney General lives up to the commitment he made to me prior to his confirmation."
This reported action directly contradicts what Attorney General Sessions told me prior to his confirmation. With no prior notice to Congress, the Justice Department has trampled on the will of the voters in CO and other states.— Cory Gardner (@SenCoryGardner) January 4, 2018