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Stocks

Wall Street parties at 19,999.63 but fails to go over 20,000 milestone

PUBLISHED : Saturday, 07 January, 2017, 3:44am
UPDATED : Saturday, 07 January, 2017, 5:34am

The Dow came within one point of 20,000 for the first time ever on Friday, fueled by a rise in Apple and extending a two-month rally fueled by optimism that President-elect Donald Trump’s policies will bolster the economy.

The Dow Jones industrial average rose to as much as 19,999.63 before backing off, ending the day up 64.51 points, or 0.32 per cent, at 19,963.8 points. Goldman Sachs rose 1.48 per cent, helping the Dow more than any other stock.

The S&P 500 gained 7.98 points, or 0.35 per cent, to 2,276.98, its highest close ever. The Nasdaq Composite added 33.12 points, or 0.6 per cent, to 5,521.06, also a record.

Nine of the 11 major S&P 500 sectors rose, led by the technology sector’s 0.96 per cent gain.

For the week, the Dow rose 1 per cent while the S&P gained 1.7 per cent and the Nasdaq jumped 2.6 per cent.

The first record high of the year for the S&P 500 follows a US Labor Department report that showed the economy added fewer-than-expected jobs last month but wages increased, suggesting resilience in the labour market.

Apple rose 1.3 per cent, helping all three major indexes, after Canada’s Competition Bureau said it did not find sufficient evidence iPhone maker had engaged in anti-competitive conduct, closing a two-year investigation into the company.

US stocks have risen sharply since Trump won the US election in November and while Friday’s additional gains suggested the rally is not yet over, some investors have grown cautious.

“The market’s advance is understandable because of the economic stimulus optimism associated with a new Trump presidency,” said CFRA chief investment strategist Sam Stovall. “But parabolic market advances traditionally experience digestion of these gains, and I don’t think this time will be any different.”

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