The S&P 500 index set a new record today, as Apple Inc. boosted tech companies and health-care shares rallied amid positive earnings reports, but Boeing Co. results dragged the Dow lower.
By Paolo Palazzi-Xirinachs
Wednesday, July 23, 2014
Apple surged to the highest since 2012 after signaling the wait for new products is nearing an end. Biogen Idec Inc. rallied 11% after raising its full-year forecast, while Intuitive Surgical Inc. jumped 18% as results topped estimates. Boeing sank 2.3% as a cost for a tanker rekindled concern the plane maker would struggle with a new aircraft program. Facebook Inc. rose 0.8% in late trading after reporting profit that topped estimates. At 4:00 PM in NYC the S&P 500 had added 0.2% to set a new record at 1,987.19. The Dow slipped 25.63 points, or 0.2% to 17,087.91. Boeing is the sixth-largest component of the Dow by weighting at 4.85%.
Ongoing conflicts in Ukraine and the Gaza Strip kept the broader market's gains in check. In the Middle East, Israeli Justice Minister Tzipi Livni said the nation doesn’t plan to stop its Gaza Strip offensive as long as the Palestinian territory’s Hamas rulers continue to pose a threat. US Secretary of State John Kerry flew to Israel in pursuit of an elusive truce deal.
The situation in Ukraine and additional worries about Libyan deliveries are driving oil’s risk premium. Brent crude advanced as fighting intensified between government and rebel forces in Ukraine. West Texas Intermediate traded near its lowest closing price in two days after an industry report showed US gasoline supplies expanded. As a reslut, futures climbed as much as 0.5% in London. Gasoline inventories increased by 3.6M barrels last week according to the American Petroleum Institute.
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