Dow Industrials Make Run at 22000

By Akane Otani and Justin Yang Features Dow Jones Newswires

The Dow Jones Industrial Average on Tuesday climbed within striking distance of 22000.

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The blue-chip index rose as high as 21991, and was recently up 91 points, or 0.4%, at 21982. That advance put the index on track for a sixth straight session of gains and another closing high.

Meanwhile, the S&P 500 rose 0.2%, and the Nasdaq Composite added 0.1%. Both were on track to end three-session losing streaks.

U.S. stocks have posted records this year, buoyed by strong corporate earnings and signs of resurgent global growth. With more than half of S&P 500 companies having reported results for the second quarter, firms were on track to post their best sales growth in years.

That should help major indexes continue to climb, investors say, even as many have doubts over the timing and scale of potential policy changes from the Trump administration, such as tax cuts and infrastructure spending.

"Equities are in an earnings-driven market, surprising to the upside," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

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Bank shares lifted U.S. stock indexes. Goldman Sachs Group added 1.1%, while J.P. Morgan Chase rose 1.3%, boosting the Dow industrials. Index heavyweight Apple is due to report earnings after the market closes Tuesday.

Royal Caribbean Cruises and Archer Daniels Midland Co. were among the S&P 500's best performers after beating Wall Street's quarterly earnings expectations.

Boeing, which has helped lift the Dow industrials this year, was one of the stocks standing in the way of the index reaching its latest thousand-point milestone Tuesday. Boeing shares fell 0.6%, shaving roughly 10 points of the index.

Although corporate earnings have generally been solid, soft U.S. economic data Tuesday weighed on some corners of the market.

Shares of car companies fell, with General Motors down 3.7% and Ford Motor losing 2.4%, after major U.S. auto makers said sales dropped sharply in July. The two stocks were among the S&P 500's worst performers.

Government bond prices climbed after data showed U.S. factory activity decelerated in July from the prior month, and the Federal Reserve's preferred measure of inflation, the price index for personal-consumption expenditures, was flat in June from the prior month. The yield on the 10-year U.S. Treasury note fell to 2.266%, according to Tradeweb, from 2.292% Monday. Yields fall as prices rise.

Elsewhere, the Stoxx 600 Europe rose 0.6%, lifted by a raft of upbeat earnings reports. Data also showed Tuesday that the eurozone's economic growth gathered steam in the second quarter.

Earlier, improvement in a closely watched private gauge of manufacturing in China fueled Asian shares. A reading from Caixan and IHS Markit rose for a second straight month in July and hit its highest level since March.

The Shanghai Composite Index rose 0.6% after four consecutive sessions of gains. Hong Kong's Hang Seng Index hit fresh two-year highs, rising 0.8%, while Korea's Kospi added 0.8%.

Amrith Ramkumar contributed to this article.

Write to Akane Otani at akane.otani@wsj.com

(END) Dow Jones Newswires

August 01, 2017 14:38 ET (18:38 GMT)