Dow Jones passes 22,000 for a new record high

Dow Climbs Above 18,000 For First Time On Strong GDP Figures
The Dow Jones Industrial Average hit another symbolic landmark (Source: Getty)

The Dow Jones Industrial Average closed above 22,000 points for the first time ever today after a strong set of results from Apple last night.

The US index closed up 0.24 per cent at 22,016.24 points after reaching an intraday high of 22,036.10 points.

Apple's shares closed 4.73 per cent higher at $157.14.

The new landmark symbolises the continued strong performance of corporate America.

Read more: Global stocks bonanza: Dow Jones at 21,000 as FTSE 100 hits new record high

The Dow is largely symbolic, while professional investors tend to focus on the S&P 500, a far broader and more accurate measure of the fortunes of US companies. The S&P 500 closed up 0.05 per cent.

The DJIA is the longest-running US index, with a history going back to 1885, but it only follows 30 companies, which are arbitrarily selected. Furthermore, the DJIA is a price-focused index, which does not take into account market capitalisation of its constituents.

However, one person who has embraced the symbolism of the Dow hitting 22,000 points is US President Donald Trump.

Yesterday on Twitter he wrote that the "mainstream media seldom mentions" the continued rise in the stock market, focusing instead on the chaos unfolding in the White House. Trump pointed out that the Dow has hit successive milestones in the six months of his presidency.

US stocks surged in the aftermath of Trump's election as President as firms looked forward to tax cuts and deregulation. They have also been boosted by a pick-up in the global economy.

The Dow was boosted today by the strong performance in Apple shares, which gained more than five per cent at the open. Apple last night beat analysts' expectations, with an extra boost from record services revenues.

Fast food giant McDonald's and engineering group United Technologies were among the other leading risers on the index, although both had gained less than one per cent at the time of writing.

David Madden, market analyst at CMC Markets, said: "Even though we may see the odd pullback, the bullish sentiment won’t be shaken off lightly.

"As always, investors are unnerved by goings on in the White House but, by the looks of it, we would need to see a major scandal break before traders get spooked."

The performance of the indices stands in contrast to that of the US dollar, which has retreated to 30-month lows against the euro after peaking at the start of the year.

Read more: Apple shares rise as it beats expectations in the third quarter

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