Wall Street closed higher on Tuesday, with the Dow ending in record territory, supported by earnings results from Caterpillar and 3M that came in ahead of expectations.
Both Caterpillar and 3M boosted the blue-chip average’s advance with 5% plus gains, but investors limited the rise as they sold off health-care shares.
The Dow rose 167.80 points, or 0.7%, to 23,441.76, marking its 54th record close of 2017.
The S&P 500 added 4.15 points, or 0.2%, to end at 2,569.13, while the Nasdaq Composite rose 11.60 points, or 0.2%, to 6,598.43, with gains limited by a drop in biotechnology shares.
Both the S&P and Nasdaq remain half of a percentage point away from their record levels.
The local market here should open with a small gain if Wall Street’s confidence is any guide, while a small rise in iron ore prices – up 44 cents to $US62.42 a tonne will see shares in BHP, Rio Tinto and Fortescue supported.
Gold prices dipped to a two week low, down $US2.60, or 0.2%, to settle at $US1,278.30 an ounce on Comex—the lowest since October 6.
Comex silver for December delivery ended at $US16.966 an ounce, down 10.9 cents, or 0.6%. Copper though rose 0.3% to just under $US3.20 a pound on Comex.
Oil prices however rose more than 1% and settled at six month highs in the US. December West Texas Intermediate crude futures rose 57 cents, or 1.1%, to settle at $US52.47 a barrel in New York —the highest finish since April 17.
In London Brent oil futures for December delivery, rose 96 cents, or 1.7%, to $US58.33 a barrel – the highest settlement in a month.
But US Treasury prices slipped, pulling yields higher, amid talk of progress on tax legislation, renewed speculation over who will become the next Federal Reserve chair and ahead of a European Central Bank policy meeting tomorrow night.
The benchmark 10-year Treasury yield climbed 3 basis points to 2.406%, its highest since May 10.
The uS dollar firmed and the Aussie fell under 78 US cents to trade around 77.80 in early Asian dealings on Wednesday.
