US open: Dow Industrials hits record high then falls back

By Sharecast News

Sharecast News | 01 Aug, 2017

Updated : 15:32

21:28 03/05/24

27.81
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Max: 27.91
Min: 27.52

Volume: 33,625,208
MM 200 : 30.14

Stocks are trading slightly higher ahead of an eagerly awaited update from tech giant Apple after the close despite a slightly mixed news-flow on the corporate front.

As of 1451 BST, the Dow Jones Industrial Average was ahead by 0.29% or 63.68 points at 21,954.80, alongside gains of of 0.20% or 4.87 points to 2,475.13 for the S&P 500 and an advance of 0.21% or 13.37 points to 6,362.08 in the Nasdaq Composite.

Just after the opening bell, the Dow Jones Industrials hit a fresh record high of 21,988.34.

Of interest, strategists at Bank of America-Merrill Lynch said that in July their 'sell-side' sentiment indicator remained in 'neutral' territory for an eighth consecutive month.

"When our indicator has been this low or lower, returns over the next 12 months have been positive 94% of the time," they said.

In corporate news, drug giant Pfizer was lower after posting weaker-than-expected sales of $12.90bn for the three months to June (consensus: $13.07bn). However, the company did beat on the bottom-line.

Ford and GM were acting as a further drag after reporting sales drops last month of 7.4% and 15.4%, respectively.

Yet investors cheered results from agricultural commodity processor Archer Daniels Midland, despite the company having missed analysts' forecasts.

Shares in telecoms giant Sprint and Royal Carribean Cruises were also boosted by their latest quarterly updates.

Economic data was more supportive, with the ISM's factory sector purchasing managers' index for July printing at 56.3 for July which was down from a reading of 57.8 for June (consensus: 56.2).

On the other hand, according to the Department of Commerce, personal US incomes were flat on the month in June (consensus: 0.4%).

However, analyst Blerina Uruci at Barclays put that weakness down to the more volatile income components - such as interest and dividend income - which had risen strongly in May.

Instead, Uruci said she preferred to focus on the large $30.8bn on the month rise in wages and salaries.

After the close of New York trading, earnings were due from technology giant Apple, Match Group and Herbalife.

RBC Capital Markets pegged Apple's third-quarter revenue and earnings per share at $44.9bn and $1.58, which was largely in-line with the consensus.

Dow Jones - Risers

JP Morgan Chase & Co. (JPM) $93.00 1.31%
Goldman Sachs Group Inc. (GS) $228.04 1.20%
Verizon Communications Inc. (VZ) $48.91 1.05%
Chevron Corp. (CVX) $110.23 0.95%
Intel Corp. (INTC) $35.72 0.72%
3M Co. (MMM) $202.43 0.63%
Visa Inc. (V) $100.17 0.61%
Exxon Mobil Corp. (XOM) $80.44 0.50%
Travelers Company Inc. (TRV) $128.71 0.48%
Walt Disney Co. (DIS) $110.45 0.47%