The US Dow Jones Industrial Average closed at a record level, extending gains to the record closing last week. The index, reflecting the top 30 US companies, climbed 25.61 points to 22 118.42 points, with Boeing and Goldman Sachs having the biggest contribution. The reason for the higher record levels was the earnings for companies that were better than expected. As a reference, total earnings growth is about 10.1%, with S & P Capital IQ initially forecasting 6.2% growth.
Bruce McCain, chief investment strategist at Key Private Bank, commented that it is very difficult to see something to send the market down. He added that the financial performance of the companies is very good and although at some point the speed that the market has picked up will drop. It is very difficult at present to imagine it. This week will be filled with financial results for the quarter of companies such as Michael Kors, Macy’s and Nordstrom. Disney and News Corp also have to publish their earnings this week. The broad index S & P 500 also managed to record a 0.16% increase, closing at 2480.91 points. Technological Nasdaq followed the example of the two major indexes and reported a growth of 0.51% to 6383.77 points.
Bigger loser in the Dow was United Technologies, which dropped 2.4 percent. There are rumors that this industry company wants to take over aircraft manufacturer Rockwell Collins. That share just increased by almost 7 percent. At the same time, aircraft builder Boeing, with a gains of 1.1 percent, belonged to the stronger risers among the Dow funds.
NxStage Medical was also very active. Investors pushed the share more than 28 percent higher, because Fresenius Medical Care has announced the acquisition of the U.S. home dialysis equipment maker for $2 billion.
Netflix, after its first ever acquisition, announced a 0.6 percent advance. The provider of internet television draws the wallet for publisher of comic books Millarworld.
Tyson Foods jumped nearly 6 percent after it increased expectations for the entire financial year.
Warren Buffett’s billionaire Berkshire Hathaway, on the other hand, decreased by more than 1 percent. The investment company saw its results fall for the third quarter in a row.
Tesla lost 0.5 percent after the electric car manufacturer indicated raising $1.5 billion from investors. That money, among other things, Tesla wants to use to increase the production of the new, more affordable Model 3.