Dow climbs 130 points as market rally shows no sign of abatement

U.S. stock benchmarks on Wednesday traded in record territory, extending a solid start to the year for Wall Street equities on the back of better-than-expected earnings.

What are the main benchmarks doing?

Dow Jones Industrial Average
DJIA, +0.66%
gained nearly 134 points, or 0.5%, to 26,345, while S&P 500 index
SPX, +0.43%
tacked on 6 points, or 0.2%, to 2,845. The Nasdaq Composite Index
COMP, +0.22%
meanwhile, was trading at break-even levels at 7,459, less than 0.1% lower, pulling back after setting an intraday record at the open.

All three equity benchmarks opened at an all-time intraday high.

On Tuesday, the S&P 500and Nasdaq Composite notched all-time closing highs again, while the Dow edged back from its record close hit on Monday.

The three equity gauges are up between 6% and 8.1% so far in 2018, adding to last years sizable gains as investors cheer the expanding U.S. economy and growth in corporate profits.

What are strategists saying?

The S&P 500 really is up more than 6% so far this month and shows no sign of abatement, said Voya Investment Management strategists Doug Cot茅 and Karyn Cavanaugh in a note.

What could possibly go wrong? Well, one risk to the market could be global trade, they added, noting that President Trump late Monday approved tariffs on imports of solar panels and washing machines.

Which stocks look like key movers?

Shares in Qualcomm Inc.
QCOM, -0.37%
traded 0.7% lower after the chip company was hit with a $1.2 billion antitrust fine by the European Union. The EU said Qualcomm made illegal payments to Apple Inc.
AAPL, -0.92%
for exclusively using its chips in iPhones and other products.

Conglomerates General Electric
GE, -0.36%
saw its stock drop 1.3% it said the Securities and Exchange Commission was probing the process that led to a sizable increase in its insurance reserves last week. The industrial conglomerate also reported weaker-than-expected quarterly results but offered a rosier revenue projection for its power and oil-and-gas business.

Comcast Corp.s stock
CMCSA, -0.24%
gained 0.6% after reporting earnings boosted by its broadband business and after announcing plans to repurchase $5 billion in stock in 2018.

Puma Biotechnology Inc.s shares
PBYI, -28.31%
slumped by 28% after its price target was lowered, notably by J.P. Morgan Chase, as the company said a European Medicines Agency committee completed a negative vote for its breast cancer therapy neratinib.

Shares of United Technologies Corp.
UTX, +0.69%
rose modestly, up 0.3%, after its fourth-quarter results, which revealed charges stemming from the new tax law.

Texas Instruments Inc.
TXN, -5.39%
appeared on track to decline 6.4% after the chip company delivered in-line results and a modest outlook late Tuesday.

United Continental Holdings Inc.
UAL, -10.22%
rose 0.1%F after the airline posted earnings late Tuesday.

Ford Motor Co.
F, +0.29%
results are due to report after the close of trade. Shares were up about 0.3%.

What are other assets doing?

The ICE U.S. Dollar Index
DXY, -0.92%
was trading at a fresh three-year low as U.S. Treasury Secretary Steven Mnuchin said a weaker greenback is good for trade while speaking at the World Economic Forum in Davos, Switzerland. European
SXXP, -0.13%
and Asian stocks have been a mixed bag.

Gold futures
GCG8, +1.34%
were jumping by more 1.2%, while oil futures
CLH8, +0.26%
were slightly higher, up 0.1%.

What economic data could help drive markets?

At 9:45 a.m. Eastern Time, Markit was slated to deliver January readings for its purchasing managers indexes for manufacturing and services.

A December report on existing home sales is due to arrive at 10 a.m. Eastern.

Check out: MarketWatchs Economic Calendar

Related Topics U.S. Stocks Markets NY Stock Exchange NASDAQ

Quote References DJIA +171.75 +0.66% SPX +12.07 +0.43% COMP +16.12 +0.22% QCOM -0.25 -0.37% AAPL -1.63 -0.92% GE -0.06 -0.36% CMCSA -0.10 -0.24% PBYI -25.73 -28.31% UTX +0.94 +0.69% TXN -6.46 -5.39% UAL -7.97 -10.22% F +0.04 +0.29% DXY -0.83 -0.92% SXXP -0.51 -0.13% GCG8 +17.90 +1.34% CLH8 +0.17 +0.26% Show all references
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