News from AAP

Dow closes above 15,000 for first time

Print This Post A A A

The blue-chip Dow Jones Industrial Average has closed above 15,000 for the first time as investor optimism about the US economy bolstered equities like Caterpillar.

The Dow jumped 87.31 (0.58 per cent) to finish at 15,056.20, only two days after it first crossed the 15,000 threshold in intraday trade.

The broad-based S&P 500 added 8.46 (0.52 per cent) at 1,625.96, its fourth consecutive all-time closing high.

The tech-rich Nasdaq Composite rose 3.66 (0.11 per cent) to 3,396.63.

“We are continuing to see somewhat of a rotation into more of the cyclical names over the last week,” said David Levy of Kenjol Capital Management, who cited Caterpillar as an example.

Dow member Caterpillar, which sells construction equipment and other industrial materials, rose 2.5 per cent.

The Dow’s landmark close was the latest in a string of recent stock market records fuelled by heavy liquidity from central banks and some better US economic data.

Analysts said the rally also found support in the Australian central bank’s surprise quarter-point interest rate cut to a record low 2.75 per cent and a jump in German factory orders.

JPMorgan Chase gained 2.0 per cent after shareholder advisory firm Glass Lewis endorsed a shareholder proposal to split the chairman and chief executive roles.

Health care company Baxter International lost 2.5 per cent after announcing the failure of a clinical study on its treatment to reduce cognitive decline in people with Alzheimer’s disease.

DirecTV rose 6.9 per cent after reporting earnings that beat analyst forecasts by 35 cents per share and higher-than-expected revenues.

Petroleum company EOG Resources barrelled 7.7 per cent higher after announcing 36 per cent year-over-year oil production growth. EOG, a major player in the shale boom, expects to post “peer-group leading” crude output growth rates over 2013-2017.

First Solar dropped 8.9 per cent after reporting earnings that were six cents shy of expectations, excluding charges.

Bond prices fell. The yield on the 10-year US Treasury rose to 1.78 per cent from 1.77 per cent late on Monday, while the yield on the 30-year bonds rose to 3.00 per cent from 2.99 per cent. Bond prices move inversely to yields.