Wall St. Hits New Record Highs as Financials, Industrials Gain

Andrew Cummings
September 19, 2017

In 3.21pm trading in NY, the Dow Jones Industrial Average rose 0.3 percent, while the Nasdaq Composite Index inched 0.03 percent higher.

US stocks index futures pointed to another record open for the S&P and the Dow on Tuesday, ahead of the two-day Federal Reserve meeting that is expected to roll out a plan to pare the central bank's bond holdings. The main event, however, will be the Fed's meeting on Tuesday and Wednesday, at which it is likely to take another step toward policy normalization in what is rapidly becoming a worldwide trend.

The subtle moves came after the Dow average DJIA, +0.28% notched its 40th record close of the year on Monday, while the S&P 500 index SPX, +0.15% ended at an all-time high for the 35th time in 2017.

The Federal Open Market Committee begins its next two-day meeting on Tuesday.

Overnight, US stocks surged to fresh record highs as a rise in bond yields lifted banks and US Secretary of State Rex Tillerson told CBS the US seeks a peaceful resolution to its nuclear stalemate with North Korea.

In fresh deal news, shares of Orbital ATK soared, up 20.1 percent as of 2.09pm in NY after Northrop Grumman said it agreed to buy the missile and rocket maker for about US$7.8 billion in cash. The yield fell to 2.016 percent on September 8, the lowest level since November 10, 2016.

The dollar was up 0.5 per cent against the Japanese currency at ¥111.38.

Overnight in Asia, Japan's Nikkei 225 leaped 2% in its first trading session of the week to close at a two-week high of 20, 299.38 points as investors returned from a national holiday Monday buoyed by a weaker yen and speculation of a possible snap election announcement later this week from Prime Minister Shinzo Abe.

Shares of Amazon.com were down 1.3 per cent. Amazon Web Services said it will start charging its customers by the second for use of its popular EC2 virtual slices of servers in its data centres, according to a CNBC report. Northrop's shares traded 2.8 percent higher in NY. The broadest measure of regional shares, the MSCI Asia ex-Japan index, was marked 0.1% higher by the end of the session. Gold dipped 1% to $1,311 an ounce. US crude oil prices slipped below $50 per barrel but stayed close to multi-month highs as refineries in Texas continued to restart after Hurricane Harvey. On the Nasdaq, 1,596 issues rose and 764 fell.

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