Dow Tops 22000, Boosted by Apple
The index has climbed 20% since the U.S. election in November
By Justin Yang, Demi Guo and Kenan Machado
Updated Aug. 2, 2017 9:33 a.m. ET
Apple ’s earnings could push Dow to 22000
European banks are down
Strong dollar helps Japanese market
Apple Inc . ’s latest results pushed global technology shares higher Wednesday, lifting the Dow Jones Industrial Average above 22000 for the first time ever.
The Dow has climbed 11.14% year-to-date, fueled by signs of global growth and strong corporate earnings. Futures pointed to a 0.2% opening gain for the index.
The S&P 500 and the Nasdaq were up less than 0.1% and 0.7% in premarket trading, respectively.
In European afternoon trading, the Stoxx Europe 600 was down 0.3%, dragged lower as several large banks posted disappointing results and as energy and mining companies fell. The technology sector was up 0.1% in Europe.
Tech stocks around the world gained after Apple ’s fiscal third-quarter report, released late Tuesday after the U.S. market close, beat market expectations. Its shares went up 5.7% in premarket trading.
People line up at an Apple store in Beijing, China, Jan. 3, 2017. Apple’s third-quarter results late Tuesday beat market expectations.
People line up at an Apple store in Beijing, China, Jan. 3, 2017. Apple’s third-quarter results late Tuesday beat market expectations. Photo: thomas peter/Reuters
Taiwan is home to a number of Apple suppliers, and its Taiex stock benchmark was the region’s best performer, recently up 0.8%. Technology firms also aided Hong Kong’s stock benchmark, which closed 0.2% higher.
”The tech sector as a whole has some room to appreciate,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. Still, Mr. McMillan warned that investor appetite is mostly driven by a few sector giants.
”When you look at the history of stocks that could do no wrong, usually it ends up in tears,” he said.
Positive earnings have been boosting markets since early July. They were also behind gains in Japanese shares Wednesday.
Global markets are “going to stay the course through the completion of earnings season,” said Tom White, chief market strategist at TD Ameritrade Inc. subsidiary Tradewise Advisors Inc. “I see the market staying relatively strong as there’s no downside catalyst.”
Japan’s earnings-fueled gains were also amplified in afternoon trading by a pullback in the yen.
The Nikkei closed up 0.5% as the dollar jumped 0.3% against the yen to ¥110.734. A weaker yen often lifts equities prices there as many Japanese companies rely on exports. Earnings also helped, with Honda Motor Co. climbing 2.8% after its late-Tuesday quarterly report. Sony Corp. fell 0.9%.
Also in Asia, Australia’s S&P/ASX 200 closed 0.5% lower as oil futures fell on the back of a bearish crude inventory reading from the American Petroleum Institute. Oil prices were mixed just ahead of the U.S. open, with Brent, the international benchmark, up 0.12% at 51.86 a barrel, and West Texas Intermediate down 0.04% at $49.15.
Metals prices retreated, with gold down 0.53% and copper down 0.14%.
Yields on 10-year German government bonds fell to 0.490% from 0.546% in early European trade, the first time they have been below 0.5% in more than a week. Meanwhile, 10-year Treasury yields slid to 2.268% from 2.292%.
—Jon Sindreu contributed to this article.
Write to Kenan Machado at
kenan.machado@wsj.com