Dow ends above 22,000 for first time as Apple shares surge

But they didn't spread Wednesday. Weakness in tech stocks kept the Nasdaq and S&P 500 flat.
VIDEO: REUTERS
People line up at an Apple store shortly before it opens in Beijing, China, Jan 3, 2017.
People line up at an Apple store shortly before it opens in Beijing, China, Jan 3, 2017.PHOTO: REUTERS

NEW YORK (AFP) - The Dow finished above 22,000 for the first time on Wednesday (Aug 2), closing at its sixth straight record following strong earnings from tech giant Apple.

The Dow Jones Industrial Average ended at 22,016.24, a gain of 0.2 per cent.

The broad-based S&P 500 added 0.1 per cent to close at 2,477.57, narrowly missing a record of its own, while the tech-rich Nasdaq Composite Index retreated slightly to 6,362.65.

Apple surged 4.7 per cent after reporting that quarterly net profit climbed 12 per cent to US$8.7 billion (S$11.8 billion), and revenue rose 7 per cent to US$45.4 billion. The tech giant in its report on Tuesday highlighted its increased sales of digital content and services.

Payrolls firm ADP reported that the US economy added 178,000 jobs in July, a bit fewer than in June but still a solid level. The report comes two days before the more closely scrutinised government employment report.

US stocks have risen to a succession of records over the last couple of weeks as second-quarter earnings have broadly bested expectations.

Some observers say stocks could find it hard to score additional gains given the already-lofty valuations, but others still see more potential upside.

Among others reporting earnings, Time Warner advanced 0.1 per cent after reporting an 11.6 per cent increase in second-quarter earnings to US$1 billion. The media giant highlighted the success of its blockbuster movie, Wonder Woman.

But other media stocks were under pressure, with Dow member Disney shedding 1.8 per cent, Twenty-First Century Fox down 2.2 per cent and Viacom falling 3.5 per cent.

Mondelez International advanced 1.1 per cent after it announced Irene Rosenfeld would retire as chief executive in November, to be succeeded by Dirk Van de Put, chief executive of McCain Foods Limited.