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Saturday 25

November, 2017 1:10 PM



Wall St hits new record highs

Wall St hits new record highs

Wall Street has ended the week high as the major indices close at record highs, helped by the US Senate passing a budget resolution.

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By AAP 21.10.2017 08:07 AM

US stocks hit record closing highs on Friday and the S&P 500 posted a sixth week of gains after the US Senate passed a budget resolution, lifting hopes that President Donald Trump's tax-cut plan may move forward.

Shares of General Electric reversed sharp early losses to end 1.1 per cent higher, and the S&P industrials index also finished up 1.1 per cent.

The company's new chief executive vowed to shed more than $20 billion worth of assets after the company's quarterly results badly missed Wall Street's expectations.

The Senate's approval late Thursday of a 2018 budget blueprint could pave the way for Republicans to pursue a tax-cut package without Democratic support.

"It's just a reaction to the thought that just maybe there might be something coming from Congress in the way of tax reform," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

"Everybody had kind of given up hope, and after the comments over the last 24 hours, people are like, shoot, this may actually happen."

The S&P index of financials, which are expected to benefit from the administration's proposed policies, rose 1.2 per cent and its components were among the day's best performers. The small-cap Russell 2000 index gained 0.5 per cent. Small-cap companies are likely to get a boost from tax reform.

The Dow Jones Industrial Average rose 165.59 points, or 0.71 per cent, to end at 23,328.63, the S&P 500 gained 13.11 points, or 0.51 per cent, to 2,575.21 and the Nasdaq Composite added 23.99 points, or 0.36 per cent, to 6,629.05.

All three indexes posted record closing highs, extending their recent run of records, and the Dow, which broke above 23,000 this week, gained two per cent for the week.

The Dow also registered a sixth week of gains while the Nasdaq posted four weeks of gains.

The S&P 500 was up 0.9 per cent for the week while the Nasdaq added 0.4 per cent.

Some investors saw little reason to worry about the extended climb.

"This has been a healthy advance. It has been a slow, steady grind upward. There's been extraordinarily low volatility," said Hank Smith, co-chief investment officer at Haverford Trust in Radnor, Pennsylvania.

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