Dow and S&P 500 Jump to New Records as Nasdaq Slips - TheStreet
The Dow and S&P 500 scored fresh records on Thursday, Jan. 25, as the Nasdaq declined slightly. The Dow finished up 0.54% to 26,392. It hit an intraday record high of 26,458. The S&P 500 gained 0.06% and the Nasdaq dipped by 0.05%. Stocks rose after 3M posted adjusted earnings in the fourth quarter of $2.10 a share, above estimates of $2.03. The company also raised its 2018 outlook and boosted its dividend. 3M shares rose 1.8% on Thursday. Also boosting the Dow were shares of Goldman Sachs Inc. (GS) , Boeing Co. (BA) and United Technologies Corp. (UTX) . Those companies' stock rose by 1.2%, 2.5% and 1.5%, respectively. Caterpillar Inc. (CAT) said Thursday fourth-quarter adjusted profit was $2.16 a share, topping Wall Street forecasts of $1.77. The stock rose 0.38% after tumbling sharply earlier in the session. Caterpillar said its full-year 2018 forecast for adjusted earnings was $8.25 to $9.25 a share, above forecasts of $8.15.
Ford Motor Co. (F) fell nearly 4% after the second-largest U.S. automaker reported fourth-quarter earnings that missed analysts' expectations and warned that 2018 will be a tough year.
Ford's Fourth Quarter Reveals Company Only Running on Two Cylinders
Southwest Airlines Co. (LUV) reported fourth-quarter adjusted profit of 77 cents a share, beating estimates by 1 cent. Revenue of $5.27 also topped estimates. The stock fell 3.2%.
American Airlines Group Inc.'s (AAL) adjusted profit in the fourth-quarter exceeded analysts' forecasts. American, the biggest U.S. carrier by passenger traffic, said earnings excluding special items were 95 cents a share in the quarter, 3 cents above estimates. Net profit of 54 cents a share was down 2 cents from a year earlier. The stock declined 3%.
Biogen Inc. (BIIB) reported fourth-quarter adjusted earnings of $5.26 a share, below Wall Street forecasts of $5.46. The biotech giant said it expects adjusted earnings in 2018 of $24.20 to $25.20, higher than analysts' estimates. The stock rose 2%.
Kroger Co. (KR) shares jumped 2.6% after the New York Post reported the supermarket giant was exploring an alliance with Alibaba Group Holding Ltd. (BABA) , the Chinese e-commerce giant.
The dollar plunged to a fresh three-year low on Thursday amid an increasing intense debate over global trade rules ahead ofDonald Trump's address to the World Economic Forum in Davos, Switzerland.The dollar extended declines despite Treasury Secretary Steve Mnuchin's attempts to clarify comments he made on Wednesday, Jan. 24, to reporters in Davos as he arrived at the World Economic Forum. Munchin said his views on the greenback were "clear" and "consistent" but again noted that he wasn't concerned where the dollar was trading in the short-term.
"I thought my comment on the dollar was actually quite clear (Wednesday)," Mnuchin said. "I thought it was actually balanced and consistent with what I've said before, which is, we are not concerned with where the dollar is in the short-term. And it's a very very liquid market."
Mnuchin also addressed the issue of global trade, telling a panel in Davos that "we're not looking to get into trade wars. On the other hand we are looking to defend America's interests."
That helped push the dollar index, a measure of the greenback against a basket of six global currencies, down 0.7% at last check to 88.73.
European Central Bank President Mario Draghi launched an unprecedented critique of U.S. economic policy Thursday, suggesting that the recent dollar weakness may have violated terms agreed to by global finance ministers last year in Washington.
"Currency movements justified by economic strength are a just a fact of nature," Draghi said when asked it he was concerned about the dollar's moves and comments from U.S. officials. "The issue is other moves that might be the result of certain language and the impact that has on our inflation."
Draghi Calls Out Mnuchin's Dollar 'Language' as ECB Eyes FX Market VolatilitySales of new homes in the U.S. fell more than expected in December, the Commerce Department said. New single-family home sales fell 9.3% in December to a seasonally adjusted annual rate of 625,000 units.
Jobless claims in the U.S. for the week ended Jan. 20, rose 17,000 to a seasonally adjusted 233,000, the Labor Department said.
More of What's Trending on TheStreet:
Top 4 Reasons Sears Could File Chapter 11 Bankruptcy in 2018The New 2019 Mercedes-Benz G-Class Is Mind-BlowingBlackrock CEO Larry Fink Just Served Up One Powerful Message: Panera FounderDon't Do This: Business Empires Built on Credit Cards