U.S. market indexes were higher on Wednesday with both the Dow Jones Industrial Average and S&P 500 reaching new highs. For the day, the Dow Jones Industrial Average closed at 18595.03 for a gain of 36.02 points or 0.19%. The S&P 500 was higher at 2173.02 for a gain of 9.24 points or 0.43%. The Nasdaq Composite was also higher at 5089.93 for a gain of 53.56 points or 1.06%. The VIX Volatility Index was lower at 11.70 for a loss of -0.27 points or -2.26%.
In the Dow Jones Industrial Average, the following stocks led gains:
Microsoft (MSFT, Financial) 5.39%
Cisco Systems (CSCO, Financial) 2.41%
International Business Machines (IBM, Financial) 1.16%
Stocks gained on Wednesday with the earnings outlook continuing to remain positive. On the economic calendar, the Mortgage Bankers Association’s Mortgage Applications Report and the EIA Petroleum Status Report were the leading reports for the day. Mortgage applications and refinancings were slightly lower from the previous week. Mortgage applications were down 1.3% and refinancings were down 1%. The EIA reported oil inventories down 2.3 million barrels from the previous week.
Dow Jones Industrial Average companies reporting after the closing bell on Tuesday included American Express (AXP, Financial) and Intel. Both companies beat earnings estimates and missed just slightly on revenue. American Express reported revenue of $8.24 billion, which was a decrease of -0.5%. Earnings for American Express were $2.10. Intel reported revenue of $13.5 billion which was an increase of 2.3% from the comparable quarter. Earnings per share were $0.59.
Technology stocks continued to gain on Wednesday and the technology sector was the market’s top sector. Intel’s positive report should help add momentum for Thursday. During the week IBM and Microsoft have also both reported solid earnings with significant growth in cloud.
The Nasdaq is approaching a new high and stocks are expected to gain further. In a CNBC report Wednesday, Randy Frederick gave his insight on the market’s valuations.
Disclosure: I do not own any stocks included in this article.
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