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Overnight Markets: Dow closes above 26,000 for the first time

Technology and healthcare companies accounted for much of the gains.

 
Overnight Markets: Dow closes above 26,000 for the first time

Wall Street registered a broad rally on Wednesday, with the Dow Jones Industrial Average closing above 26,000 for the first time, following the release of stronger-than-expected quarterly results from some of the biggest US companies.

The Dow rose 323 points, or 1.25%, to 26,116. The bourse also hit an all-time high in intraday trading.

The S&P 500 gained 26 points, or 0.94%, to 2,803 - a record closing high - with staples and tech rising more than 1%. The Nasdaq Composite added 75 points, or 1.03%, to 7,298.

Technology and healthcare companies accounted for much of the gains. Financials stocks also rose, even as some big banks fell after reporting hefty quarterly losses.

Tech stocks got a boost from Apple, which erased losses after announcing plans to repatriate billions in overseas cash. The stock closed 1.7% higher. IBM rose 2.9% after Barclays analysts upgraded the stock two notches to “overweight” and increased its price target by $59 to $192.

Banks seesawed as Goldman Sachs and Bank of America reported disappointing results. Bank of America was down 0.2% percent after a $2.9 billion one-time tax charge nearly halved its reported profit.

Goldman Sachs fell 1.9% after posting its first quarterly loss in six years on tax-related charges and a sharp drop in trading revenue.

Investors also bid up healthcare stocks, including Anthem. The insurer added 3.1%. Juno Therapeutics soared 51.9% after the Wall Street Journal reported that biotech drugmaker Celgene might buy it.

Industrial stocks rose after the Federal Reserve said US industrial production increased 0.9% in December. Boeing jumped 4.7% after the company announced a joint venture with car seating leader Adient to make aircraft seats.

However, General Electric slipped 4.7%, extending losses from Tuesday, when it announced more than $11 billion in charges.

Ford tumbled 7.0% after the automaker reported full-year profit below estimates and provided a downbeat forecast.

In Asia, shares bounced back on Thursday in morning trade from declines in the last session, tracking substantial overnight gains on Wall Street.

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