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Dow Jones Closes at Record High as GE Recovers 6% Slump

Published 2017-10-20, 04:13 p/m
Updated 2017-10-20, 04:23 p/m
© Reuters.

© Reuters.

Investing.com – U.S. stocks rounded off a bullish week closing in record territory on Friday on signs of progress on tax reform expected to boost U.S. economic growth.

The Dow Jones Industrial Average closed higher at 23,328.63. The S&P 500 closed 0.51% higher while the Nasdaq Composite closed at 6629.05, up 0.36%.

The rally in U.S. stocks showed little sign of coming to end as investors continued to favour riskier assets amid renewed hopes of tax reform after the Senate approved the Republican-backed budget, paving the way for Republican leaders to move ahead with their tax reform plans.

The Republican-led Senate approved a $4 trillion budget measure Thursday by a 51-49 vote. Passing a budget unlocks reconciliation, a legislative tool allowing the GOP to pass a tax bill with a simple 51-vote majority in the Senate.

Renewed optimism added to bullish sentiment on equities as traders continued to bet that corporates would outperform earnings expectations.

General Electric , however, released earnings that missed Wall Street estimates on both the top and the bottom line.

After an initial 6% decline, shares of General Electric Company (NYSE:GE) recovered to close 1% higher as investors looked ahead to November when the company is expected to provide more details on its turnaround plan.

On the economic data front, investors cheered data showing existing home sales rose 0.7% to a seasonally adjusted annual rate of 5.39 million units last month, according to a report from the National Association of Realtors.

'Bulls and Bears' on Wall Street

The top Dow gainers for the session: Bank of America Corp (NYSE:BAC) up 2.2%, UnitedHealth Group Incorporated (NYSE:UNH) up 2.1% and Goldman Sachs Group Inc (NYSE:GS) up 2%

Procter & Gamble Company (NYSE:PG) down 3.6%, Coca-Cola Company (NYSE:KO) down 0.5% and McDonald’s Corporation (NYSE:MCD) down 0.1%, were among the worst Dow performers of the session

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