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3M, Caterpillar lift Dow to record high

Posted by: Admin | Posted on: October 24th, 2017 | 0 Comments

(Reuters) – The blue-chip Dow Jones index was on track to record its biggest intraday percentage rise in more than a month on Tuesday, boosted by gains in industrial giants 3M and Caterpillar.

The maker of Post-It Notes (MMM.N) jumped 6.12 percent and Caterpillar (CAT.N) 6.07 percent after the two companies reported stellar quarterly results and gave upbeat forecasts.

The two stocks contributed nearly 140 points to the Dow’s 170 point rise.

United Technologies (UTX.N) and McDonald’s (MCD.N) also notched up gains after reporting results.

“At these levels, only companies that have both top-line and bottom-line beats could make the market move higher,” said Rick Meckler, president of hedge fund LibertyView Capital Management LLC in Jersey City, New Jersey.

The SP industrial sector .SPLRCI rose 0.75 percent, topping the 11 major SP indexes. The sector has gained about 15 percent this year, in line with the broader SP 500 index, but has underperformed sectors such as technology and healthcare.

“It offers some hope to investors that this rally will broaden out, which it needs to do, to sustain at these levels,” Heckler said.

Strong earnings and rising hopes of President Donald Trump’s tax plans moving forward have helped the Dow and SP close at record highs on all five trading days last week.

At 11:02 a.m. ET, the Dow Jones Industrial Average .DJI was up 188.55 points, or 0.81 percent, at 23,462.51, after hitting a record high of 23466.72.

the SP 500 .SPX was up 4.39 points, or 0.17 percent, at 2,569.37 and the Nasdaq Composite .IXIC was up 14.78 points, or 0.22 percent, at 6,601.61.

However, gains in the SP and the Nasdaq were kept in check by healthcare companies.

Biogen (BIIB.O) slipped 6.56 percent after reporting disappointing U.S. sales of Spinraza, a potential blockbuster drug.

Centene (CNC.N) dipped 4.19 percent after saying that White House moves to cut off Obamacare subsidies would knock 7-12 cents per share off the health insurer’s fourth-quarter earnings.

That along with a 1.4 percent drop in Johnson Johnson (JNJ.N) and a 2.5 percent decline in AbbVie AAB.N made the healthcare index .SPXHC the worst performer among the SP sectors.

Financial stocks .SPY also jumped 0.69 percent, led by gains in Bank of America B.ACN and JPMorgan (JPM.N).

General Motors GKM.N rose 2.50 percent after the No.1 U.S. automaker reaffirmed its full-year earnings forecast and promised to slash stocks of unsold vehicles.

Whirlpool (WHR.N) tumbled 10.02 percent after the home appliances maker reported profit and sales below estimates and lowered full-year earnings guidance.

Advancing issues outnumbered decliners on the NYSE by 1,550 to 1,165. On the Nasdaq, 1,575 issues rose and 1,138 fell.

Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/AeJNoqUkvVM/3m-caterpillar-lift-dow-to-record-high-idUSKBN1CT1KZ

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