The Dow Jones Industrial Average and Nasdaq Composite set new record highs on Tuesday on gains in telecom and financial stocks, after Wall Street shrugged off recent geopolitical events and continued its march to 20,000 on the blue-chip index.
Buoyed by gains in oil futures and the financial markets’ resilience to Monday’s tragic events in Europe, the benchmark averages were higher for a second day as the Trump-rally powers on. Ten of the eleven S&P 500 sectors were positive, while Dow advancers were leading decliners by a ratio of four to one.
Consumer staples were the exception with shares trading lower after General Mills (GIS) missed fiscal Q2 results and lowered sales guidance. As a result, Dow component stocks Proctor & Gamble (PG) and Coca-Cola (KO) were lower in sympathy.
The Euro Stoxx 600 closed at its highest level this year on gains in the banking sector after the Italian government said it is preparing a EUR20 billion ($20.73 billion) bailout package for its struggling banks. Banking stocks in the UK were also higher on Lloyd’s Banking Group’s (LYG) acquisition of Bank of America’s (BAC) UK credit card business for $2.4 billion.