Dow ends above 22,000 for the first time after Apple jumps on earnings

Big 5

The Dow Jones industrial average has notched another milestone Wednesday, breaking above 22,000 for the first time.

The 30-stock index broke above that level and traded 43 points higher. The Dow reached the record with a boost from Apple’s stock, which surged about 5 percent after posting quarterly results that blew expectations out of the water.

The company reported earnings per share of $1.67 on revenue of $45.4 billion. Analysts polled by Reuters expected earnings per share of $1.57 on revenue of $44.89 billion.

Drexel Hamilton analyst Brian White said in a note he sees more upside for the stock moving forward. He said: “[W]e believe investors will now feel more confident in owning the stock for the upcoming iPhone 8 cycle that is expected to begin this fall, while also benefitting from the company’s capital distribution initiative, attractive valuation and potential new innovations.”

If White’s assessment is correct, that could mean further gains for the Dow as well. Entering Wednesday’s session, Apple’s stock was the sixth-largest in terms of price. The Dow is a price-weighted index.

Source: CNBC