por admin » Jue Sep 20, 2018 8:41 am
Dow hits record, surpassing January level, as Apple rises and trade-war fears simmer down
Fred Imbert | Alexandra Gibbs
Published 4 Hours Ago Updated Moments Ago
CNBC.com
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The Dow Jones Industrial Average hit its first record high since January on Thursday as gains in Apple and a decrease in trade fears lifted the 30-stock index.
The Dow rose 219 points as Boeing, Caterpillar and Apple outperformed. The S&P 500 also hit an all-time high, its first since late August, as materials and tech outperformed.
President Donald Trump touted the S&P 500's record in a tweet, saying "Congrats USA!"
The Nasdaq Composite also rose 0.5 percent as Amazon shares gained 0.8 percent ahead of an event where they are expected to unveil new Alexa-powered devices. Apple, meanwhile, gained nearly 1 percent.
Boeing and Caterpillar, two bellwethers for trade, rose 1.1 percent and 2.3 percent, respectively.
As tensions between the two largest economies in the world slap tariffs on each other's goods, the Chinese commerce ministry said Thursday the country hopes the U.S. will take steps to correct its behavior.
Traders work on the floor of the New York Stock Exchange (NYSE) at the closing bell, November 30, 2017 in New York City
Drew Angerer | Getty Images News | Getty Images
Traders work on the floor of the New York Stock Exchange (NYSE) at the closing bell, November 30, 2017 in New York City
The comments come after the U.S. administration announced Monday it would inflict 10 percent tariffs on $200 billion worth of Chinese imports, which would rise to 25 percent by year-end. China retaliated Tuesday by announcing levies targeting over 5,000 American products worth $60 billion and to go into effect next week. The country has also filed a complaint with the World Trade Organization about the U.S.' latest round of duties.
However, the levies imposed by both countries were seen as less than previously feared, helping lift sentiment on Wall Street. The Dow is up more than 1 percent over the past two days. The S&P 500, meanwhile, has risen more than 0.6 percent in that time period.
J.P. Morgan Chase CEO Jamie Dimon also played down the conflict between the U.S. and China, calling it a skirmish and not a trade war.
Tom Martin, senior portfolio manager at Globalt, thinks investors should be more concerned with the trade situation, however. "It will take people some time realize this is not going away anytime soon," he said. "We think the situation with China will take the longest time to resolve."
General Electric shares fell 2 percent after an analyst at J.P. Morgan slashed his price target on the company to $10 from $11. The analyst noted he expects "weaker results at power and some franchise value impact."
Nvidia slipped 1.6 percent after analysts at Morgan Stanley called the company's new gaming card disappointing.