Dipo Olowookere
By Investors Hub
The major U.S. index futures are pointing to a mixed opening on Thursday following the rally to new record highs seen in the previous session. Traders are digesting the latest batch of earnings and economic news
The Dow Jones Industrial Average closed above 26,000 for the first time ever on Wednesday, extending early gains after the Federal Reserve’s Beige Book painted a sunny picture of the U.S. economy.
The major averages all ended the session at record closing highs. The Dow surged up 322.79 points or 1.3 percent to 26,115.65, the Nasdaq jumped 74.59 points or 1 percent to 7,298.28 and the S&P 500 advanced 26.14 points or 0.9 percent to 2,802.56.
The U.S. economy continued to expand at a “modest to moderate” pace in December and early January, the Beige Book said. Respondents were “optimistic” about 2018, as wages increased in most districts.
Holiday sales were higher than expected, and residential real estate activity was constrained only by limited housing inventory.
A separate report from the Federal Reserve showed U.S. industrial production surged over the winter.
The rally on Wall Street came despite some discouraging earnings news from the banking sector.
Goldman Sachs (GS) reported a loss for the fourth quarter, reflecting lower trading revenue in fixed income, currencies and commodities as well as a charge related to the recent U.S. tax reform. Shares fell 1.9 percent.
Bank of America (BAC) reported a profit for the fourth quarter that declined about 50 percent from last year, hurt by a charge of $2.9 billion or $0.27 per share, related to the Tax Cuts and Jobs Act. Shares fell 0.2 percent.
Meanwhile, Wal-Mart (WMT) said it will promote Judith McKenna to President and Chief Executive Officer of Walmart International, the company’s second-largest operating segment.
NeuroMetrix Inc(NURO) shares spiked higher after the announcement of a deal with GlaxoSmithKline (GSK) aimed at developing the Quell device outside of the U.S.
