S&P, Dow open higher as bank shares rise

Marco Green
January 13, 2018

The bank's shares rose 1.7 percent. The S&P 500 gained 2.31 points, or 0.083467 percent, to 2,769.87. (WFC) reported earnings and revenue that came in below consensus analyst forecasts in the fourth quarter.

"Energy is in a good space with crude above 64 bucks and you have industrials being driven by airlines stocks".

All three major indices again ended at records, with the Dow Jones Industrial Average up 0.9 percent at the closing bell to 25,803.19.

The Nasdaq Composite was up 5.27 points, or 0.07 percent, at 7,217.04.

That point has not been reached in the first days of 2018.

Investors were also hopeful 2018 financial forecasts from US companies would beat Wall Street estimates as many analysts may not have tax savings fully reflected in their models as the tax bill was signed into law so late in December.

Earnings for S&P 500 companies are expected to increase on an average by 11.8 percent in the quarter with profit for financial services companies growing as much, according to Thomson Reuters I/B/E/S.

"Over time they will have to revise their estimates for earnings higher", said Hugh Johnson of Hugh Johnson Advisors.

Wal-Mart edged up 0.34 percent after the world's largest retailer chose to raise entry-level wages for hourly employees to $11 an hour in February as a result of corporate tax cuts.

Oil-linked shares with big gains included Dow member Chevron, up 3.1 percent, Apache, up 4.7 percent and Schlumberger, up 1.9 percent.

Advancing issues outnumbered decliners on the NYSE by 1,462 to 1,035. On the Nasdaq, 2,140 issues rose and 771 fell.

Other reports by Click Lancashire

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