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Published: Thu, July 14, 2016
Economy | By Melissa Porter

How the Dow Jones industrial average fared on Tuesday


U.S. stocks rose for a third consecutive day Tuesday, with the Dow Jones Industrial Average joining the S&P 500 at all-time highs.

The bulls continue to charge on Wall Street, with the Dow Jones rallying 0.7% to 18,348 - a new all-time-high. Both indexes beat peaks set in May 2015.

At 9:48 a.m. ET (1345 GMT), the Dow Jones Industrial Average .DJI was up 115.27 points, or 0.63 percent, at 18,342.2.

Shaking off a 5.3 percent plunge following the United Kingdom vote, the S&P 500 Index has now climbed in eight of the past 10 days, posting the biggest advance over any such stretch since December 2011. The Nasdaq composite rose 34.18 points, or 0.7 percent, to 5,022.82.

The Nasdaq is still lagging the other two main stock indexes. The Nasdaq composite is up 0.7% to 5024 - marking the first time in 2016 that it turned positive for the year. Australia's S&P/ASX 200 rose 0.3 percent.

Though Treasury yields are just above record lows, making equities more attractive, they stand to gain as central banks globally, led by Japan and Britain, chart out new stimulus measures.

On Wednesday, Bank of Canada governor Stephen Poloz is expected to make an announcement about the central bank's benchmark interest rate, which is widely anticipated to stay on hold at 0.5 per cent.

The increase by the price of crude oil came on the heels of a recent pullback, which dragged the price down to its lowest levels in two months. Bond yields tend to fall when demand for bonds rises, which can indicate that investors are seeking safety.

"I wish we can be celebrating, but it's a little disconcerting", said Rob Bartenstein, chief executive officer of Kestra Private Wealth Services.

"I think uncertainty over Brexit and the USA election will drag on stocks in the second half of the year", market analyst Colin Cieszynski of CMC Markets Canada told Reuters.

Company earnings reports got off to a good start.

Significant strength was also visible among electronic storage stocks, as reflected by the 4.6 percent gain posted by the NYSE Arca Disk Drive Index. Brent crude, a standard for Global oil prices, rose 73 cents to $46.98 a barrel in London. Japan's Nikkei .n225 jumped 2.4 percent.

Asian and European stocks also traded sharply higher amid renewed stimulus hopes after Japanese Prime Minister Shinzo Abe won a super-majority in the upper house on Sunday. U.S Treasury bond yields continued to increase from recent record lows, as investors shifted out haven investments and pushed down bond prices. Southwestern Energy jumped 10 percent, adding $1.29 to $14.19.

Overseas, European markets were mostly higher as Germany's DAX rose 1.3% and France's CAC 40 gained 1.4%. Shares for the e-commerce site hit an all-time high mid-day but closed about 1 percent lower.

Shares of Nintendo Co. jumped 12.7 percent in Tokyo. A rate cut could undermine the sterling's dwindling yield attraction among major currencies and push it further, possibly below its 31-year low just under $1.28 hit on July 6.

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