The Dow hits 22,000 for the first time (AAPL, BA)

pulse

August 2, 2017 2:36 PM

Apple's rally after its second-quarter earnings helped push the Dow above its newest round-number milestone.

The Dow Jones industrial average has crossed the 22,000 level for the first time, thrust by Apple's rally after its earnings outperformance.

The closely followed index is trading up 0.3% on Wednesday, running its year-to-date gain to about 11.5% as traders have shrugged off the inability of President Donald Trump to pass any major pieces of legislation and have instead focused on earnings growth.

Apple on Tuesday beat analysts' expectations for fiscal-third-quarter profits and revenue, and issued strong guidance for its fourth quarter. It shares rallied to a record on Wednesday, rising 6% to as high as $159.65.

The market's gains this week came despite mostly disappointing economic data. Monthly data on personal income, manufacturing, and construction spending all missed economists' expectations, while personal spending and inflation numbers matched estimates.

Traders also shrugged off a lackluster auto sales report for the month July, which showed the Big Three automakers all missed estimates by a wide margin. And, ADP's private-payrolls report showed that employers added 178,000 jobs in July, fewer than forecast.

The Dow is a price-weighted index, meaning that companies with higher share prices — not market capitalization — have an outsized influence on its level. Boeing, which has the highest stock price on the index, added about half of the Dow’s gains during the past eight weeks. Its shares spiked after its second-quarter earnings topped forecasts, helped by cost-cutting.

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