By Corrie Driebusch and Christopher Whittall
The Dow Jones Industrial Average breached 19000 for the first time early Tuesday, a day after major U.S. stock indexes hit records.
It's been a fast surge for the blue-chip index, which closed below 18000 less than three weeks ago. Since then, a stocks rally following the U.S. presidential election disparately benefited industrial companies and banks.
That's led to an unusual dynamic: the Dow industrials are on track to post stronger yearly performance than the S&P 500 for the first time since 2011.
The Dow's late-year rally is at odds with the index's performance at the start of the year. In January, worries about tumbling Chinese stocks and weak U.S. economic data sent the blue-chip index to its worst-ever first five-day start to a year.
Since then, U.S. economic data has improved, and investors have re-embraced stocks. The election of Donald Trump also ignited a renewed demand for companies tied to economic growth, particularly in the manufacturing sector, an area that was plagued by selling earlier this year.
Banks also are new stock-market darlings, as investors have bet on loosened regulation under Mr. Trump as well as greater inflation.
Since the election on Nov. 8, the Dow industrials is up 3.4% through Monday's close, while the S&P 500 is up 2.7%.
Big banks have led that rally, with Goldman Sachs contributing nearly 200 points of the Dow's 624-point gain in that time.
The Dow industrials are now on track to end the year up 9.1%, while the S&P 500 is on pace to finish 2016 up 7.8%.
On Tuesday, the Dow industrials recently rose 52 points, or 0.3%, to 19009.
The S&P 500 added 0.2%, and the Nasdaq Composite gained 0.4%.
The three indexes, plus the small-cap Russell 2000, all closed at records Monday.
In other markets, oil prices rose in choppy trading, and remained at around three-week highs as investors continued to bet the Organization of the Petroleum Exporting Countries will reach a deal to cut production at the end of the month. U.S. crude oil prices rose 0.2% to $48.36 a barrel, after rising to just shy of $50 a barrel in earlier trade.
On Tuesday, gold prices rose 0.3% to $1,213.20 an ounce. Copper extended a weekslong rally that has propelled the price of the metal up by more than 14% this month.
The dollar was little changed Tuesday as investors continued to take stock following the currency's sharp postelection rally. The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was up 0.1% recently, after a 0.5% decline Monday broke a 10-trading day winning streak.
Government bonds rose slightly Tuesday as yields fell. The yield on the 10-year U.S. Treasury note was 2.303% recently, according to Tradeweb, down from 2.335% Monday. That compares with a close of 1.867% on election day.
On Tuesday, the Stoxx Europe 600 gained 0.5%, led higher by banks, insurers and utilities shares.
In Asia, shares gained across the board as local investors shrugged off comments from Mr. Trump that he would order a withdrawal from the proposed Trans-Pacific Partnership trade deal.
The Nikkei Stock Average recovered, after falling in response to a 6.9-magnitude earthquake that struck off the eastern coast of Japan early Tuesday, to close up 0.3%. Australia's energy-heavy S&P ASX/200 rose 1.2%, while Hong Kong's Hang Seng Index was up 1.4%.
Write to Corrie Driebusch at email@example.com and Christopher Whittall at firstname.lastname@example.org
(END) Dow Jones Newswires
November 22, 2016 10:53 ET (15:53 GMT)
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