Published: Wed, January 17, 2018
Economy | By Melissa Porter

United States stock rally sputters as Dow fails to hold 26000

United States stock rally sputters as Dow fails to hold 26000

"The Dow's performance in the first two weeks of 2018 has been nothing short of breathtaking", said Jesse Cohen, senior editor at First Hawaiian Bank's holdings in SPDR Dow Jones Industrial Average ETF were worth $562,000 as of its most recent SEC filing.

On Tuesday, a big chunk of the Dow's gains could be attributed to UnitedHealth Group (UNH) which was surging in the pre-market session after a big earnings and revenue beat.

The Standard & Poor's 500 index fell 5 points, or 0.2 percent, to 2,780 as of 3:29 p.m. The Nasdaq Composite Index was up 55.72 points, or 0.77 percent, to 7,316.79.

Wall Street shares surged to another record breaking start on Tuesday, with the Dow Jones breaching the 26,000 mark.

BP slid 2.9 per cent after the energy company said it would take a charge of about $1.7 billion in its fourth-quarter results as part of the settlement of the 2010 Deepwater Horizon spill. The tumble follows a sharp jump in Viacom shares Friday after a published report suggested that a merger might be a possibility.

The latest leg up in stock prices has been driven by more than just investor exuberance, however. CBS rose $1.01, or 1.7 percent, to $59.84.

IN GEAR: General Motors rose 0.5 percent after the automaker said it expects strong sales in North America and China will sustain its profit through the rest of this year. The yield on the 10-year Treasury fell to 2.54 percent from 2.55 percent late Friday.

On the currency front, the USA dollar is trading at 110.74 yen compared to the 110.54 yen it fetched at the close of NY trading on Friday.

Bitcoin tumbled 18 percent to a four-week trough close to $11,000, after reports that a ban on trading of cryptocurrencies in South Korea was still an option. The law is expected to be a major boost for shareholders as corporations divert their tax savings to buying back their stock, which would raise its price, or issuing dividends.

LONDON: European shares ended little changed on Tuesday as losses among commodity stocks more than offset initial gains due to a series of well-received trading updates. In Germany, the Dax added 0.35 per cent, while the French Cac 40 was up less than 0.1 per cent. In Asia, Tokyo's Nikkei 225 added 1 percent, while Hong Kong's Hang Seng jumped 1.8 percent.

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