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Wall Street shares close firmly higher

Last updated: 16:06 25 Apr 2017 EDT, First published: 03:22 25 Apr 2017 EDT

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  • US stocks close higher

  • Nasdaq up over 6,000

  • Dow Jones  goes past 21,000

  • Trump's tax plans in focus

 

US stocks finished higher - the Dow Jones up 232 at 20,996.

The S&P500 also closed higher - up around 14 at 2,388, while the Nasdaq added over 41 at 6,025.

US crude enjoyed a bounce too, with the price of a barrel of West Texas Intermediate, up 1.2% to US$ 49.81.

In Toronto, the TSX closed over 32 points up, at 15,745.

MID-SESSION

First it was the Nasdaq to hit 6,000, now the Dow Jones has surpassed the 21,000 mark as Wall Street keeps powering north.

In midafternoon, the Dow Jones is up 258 at 21,023 and the Nasdaq is 47 ahead at 6,031.

The broader based index, the  S&P500 is 16 points ahead at 2,390.

On that latter index, machines group Caterpillar (NYSER:CAT) is the biggest gainer , up 7.56% to $104.13.

A combination of better sales and lower costs helped the firm race past market forecasts.

“For the first time in more than two years, same quarter sales and revenues increased," said Jim Umpleby, chief executive.

Revenues for the quarter to March rose to US$9.82bn (US$9.46bn), while underlying earnings doubled to US$1.28 per share.

Meanwhile, Netflix (NYSE: NFKX) is also higher -  at $152.85 - up 6.22%. It comes as the firm is poised to introduce original content in China via a licensing deal with local video streaming service iQiyi.com.    

Express Scripts (NYSE: ESRX) was the biggest loser on S&P 500, down 12.28% to $58.99.

 

10.15 am ..US shares head higher

As expected US shares shot out of the blocks and the tech focused Nasdaq has breached the 6,000 mark.

It's the first time the US benchmark has got that high and comes as global markets are rallying on the back of optimism on Trump's tax plans, a clutch of strong earnings reports and the prospect of a stable EU, despite Brexit.

Data out this morning also shows sales of new homes raced to the highest level in nearly a year last month.

The Nasdaq exchange is up 27  to 6,011, while the S&P 500 is up almost 12 to  2,386. The Dow Jones  has added 203  to stand at 20,967. 

Among notable gainers was fast food giant McDonalds (NYSE: MCD) which is up almost 4% as its quarterly performance beat forecasts.

8.20am....US stocks seen higher....

US stocks are seen to continue their very good run from yesterday (Monday), when benchmarks posted the biggest gains for more than seven weeks, boosted by banks..

Futures for the Dow Jones Industrial Index are up 65 points at the time of writing, while the Nasdaq is trading 11 points higher.

The broader based S&P500 index is up over four points. It comes after yesterday, the Dow closed up  216 at 20,763, the S&P 500 added over 25 at 2,374 and the Nasdaq gained 73 at 5,983.

Global markets yesterday appeared to be boosted by pro-EU Centrist leader, Emmanuel Macron, winning the first round of votes in the presidential election.

He is now the favourite to win the vote after making it through to the second round with far-right leader Marion Le Pen.

In London, FTSE 100 is continuing its gains, up around 16 points at 7,280. In France the CAC 40 is up 20 points to 5,289.

US crude is also a tad higher but still below that $50 a barrel mark - at $49.25.

Today, traders will once again be eying the banks after they led the market higher due to a recovery in yields.

Chris Beauchamp, at London based spread bet firm IG index, said the sector "has endured a tough couple of months, losing around 10%, but now seems poised for a bounce back, particularly if Trump can kickstart his reform plans around taxation".

That theme will certainly be in focus again today, as reports emerged that  the president wants to announce his planned tax cuts tomorrow - three days  before his 100th day in office.

Reportedly, he has ordered his staff to  cuts the corporate tax rate to 15% from its current 35%,  despite the fact that it would increase national debt and expand the government's budget deficit.

Morgan Stanley (NYSE:MS) closed over 4% higher yesterday, at $43.56, while Goldman Sachs Group Inc (NYSE:GS) added almost 3%.

 

There is a raft of earnings in focus again today include from fast food titan McDonald's Corporation (NYSE: MCD), which is posting its quarterly numbers. In pre-market, shares are down 0.10% at $134.09.

 

Before the open Eli Lilly and Co (NYSE:LLY) is projected to report quarterly earnings at $0.96 per share on revenue of $5.21 billion. 

Shares closed 1.87% higher yesterday, but are down 0.26% in pre-market.

Also reporting is Baker  Hughes (NYSE:BHI), Caterpillar (NYSE:CAT) among many others.

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