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Published: Wed, July 13, 2016
Economy | By Melissa Porter

Stocks open higher on Wall Street; Dow nears a record high

Stocks open higher on Wall Street; Dow nears a record high

The Dow soared 120.74 (+0.66 percent) to close at 18,347.67 for a record high.

That came a day after the Standard & Poor's 500 index closed at its own record high.

Traders work on the floor of the New York Stock Exchange in New York City July 11, 2016.

Stocks are rising in late morning trading Tuesday, putting the market on track for another milestone.

The benchmark S&P 500 hit 2,155.32, topping Monday's intraday record high by more than 12 points, while the Dow Jones industrial average rose to 18,363.72 to top its previous record intraday high touched in May 2015.

A broad rally lifted the S&P 500 and Dow industrials to record highs on Tuesday, with a sharp rebound in crude prices boosting energy shares, while the Nasdaq turned positive for the year.

The benchmark closed at a record 2,137.16, overtaking the previous high of 2,130.82 hit on May 21, 2015.

The Nasdaq Composite .IXIC was up 36.21 points, or 0.73 percent, at 5,024.85, and moving into positive territory for the year. Consumer stocks are plunging after Macy's slashed its profit forecast and reported a steep drop in earnings. Alcoa (AA) unofficially kicked off the parade of second-quarter earnings reports after the bell Monday.

Seagate STX.O jumped 16.2 percent to $28 after the hard-disk drive maker estimated quarterly results that beat analysts' expectations. It also announced it will cut 6,500 jobs, about 14% of its total.

JAPAN JUMPS: Tokyo's Nikkei 225 index surged 2.5 percent, a day after soaring 4 percent.

Sentiment was also boosted by expectations of additional economic stimulus in struggling Japan after Prime Minister Shinzo Abe's party swept parliamentary elections. Investors are betting he'll keep flooding the market with money by expanding bond purchases.

THE QUOTE: "Abe has always been supportive of quantitative easing, thus his victory has brought more hope to the market that we will probably see a new round of "Abenomics" soon", said Margaret Yang of CMC Markets in Singapore.

Overseas, European markets were mostly higher as Germany's DAX rose 1.3% and France's CAC 40 gained 1.4%.

Other stocks on the rise were airlines United Continental and American Airlines, up a respective 2.2 percent and 3.7 percent, and travel companies Priceline and Expedia, which rose 1.6 percent and 1.7 percent.

The FTSE 100 added 1.4%.

ENERGY: Benchmark U.S. crude added 77 cents to $45.53 a barrel in NY. Brent crude, a standard for worldwide oil prices, lost 16 cents to $46.59 a barrel in London.

USA stocks may be trading at record highs, but they are not expected to get much more bounce this year, according to strategists in a Reuters poll who predicted a rough second half. Trading on Monday didn't fit that trend, as seven of the S&P 500's 10 main industries rose with cyclical groups like technology, financial and industrial companies leading gains.

The FTSE 100 is now higher than it was before the Brexit vote, although that in part reflects the fact that the index contains a large number of companies with high USA dollar earnings, which will now be worth more in sterling terms due to the fall in the value of the pound.

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