US stocks rose solidly on Wednesday and the Dow crept ever closer to the 20,000 record level as automotives and oil prices were the main talk of the Street.
Even down-on-its-luck Volkswagen US had something to be proud of.
A huge lead of 84% of NYSE stocks gained this session and only 16% of stocks fell. On the Nasdaq exchange 77% of stocks rose and on the American stock exchange 75% advanced.
The Dow Jones Industrial Average ended up 0.3% at 19,942, after hitting an intraday high of 19.956. The figure to beat for a fresh high is 19,987 scaled in mid-December.
The S&P 500 market bellwether ended up 0.6% at 2,270 and led by Freeport-Mcmoran Inc (NYSE:FCX) up 7.6% to $14.83 while second-biggest riser was NRG Energy (NYSE:NRG) up 5.9% at $13.03.
Oil prices, which at the Wall Street opening were firm, rushed higher and US oil benchmark West Texas Intermediate rose 2% at $53.35.
Other top-five risers were also the initial leaders of the S&P 500, the car makers General Motors (NYSE:GM) and Ford Motor Co (NYSE:F) after strong December sales figures from both and prospects of more to come in 2017.
Meanwhile, German automaker Volkswagen US (OTC:VLKAY) reported that December auto sales increased 20.3% from a year earlier. The company had overcome languishing under the cloud of a diesel-emissions scandal. However, ADRs ended down 0.3% at $29.69.
Later, official US car sales data supported the euphoria, when total vehicle sales in December in the world’s biggest economy were reported at 18.43mln units. That was way above a forecast of 17.7mln and above November’s 17.87mln.
GM shares ended up 5.5% at $37.09 and Ford up 4.6% at $13.17.
The S&P Midcap 400 shot higher at the start of the session and never dropped the ball. Throughout the session it chalked up gains of 1.5% and ended up 1.6% at 1695. Top gainer was Tenet Healthcare Corp (NYSE:THC) up 8.8% at $16.75.
The S&P Smallcap 600 advanced by an impressive 1.7% to 857 and led throughout the session by Ciber Inc (NYSE:CBR), up 9.4% to $0.70.
Early trading
US stocks shot higher on Tuesday largely thanks to a surprise on the upside for the ISM New York business activity index as well as blue-chips being led by automotive stocks after bumper sales figures.
The S&P 500 market bellwether was up 0.5% at 2,269 and led by Ford Motor Co (NYSE:F) up 5% to $13.21 and General Motors (NYSE:GM) up 4.84% to $36.85.
General Motors, the largest American automaker, said total US sales climbed 10% in December from a year ago to 319,108, eclipsing analysts’ estimates for a 4.4% gain. That saw GM’s 2016 sales rise 2% from a year ago.
Meanwhile, Ford said total US sales last month rose 0.3% to 239,854 vehicles. US light vehicle sales were up 0.1%, against expectations for a 2.1% drop.
Automakers saw a record 17.5mln in car sales last year and are hoping to have topped that in 2016.
The good headwinds helped Tesla Motors Inc (NASDAQ: TSLA) too. Shares were up 4.5% at $226.71.
Meanwhile, the Dow Jones Industrial Average was up 0.2% at 19,926. Earlier it hit an intraday high of 19.946 and was closing in on the record 20,000 level.
The ISM New York Index for December was 63.8 versus a forecast ten whole points lower and compared with 52.5 in November.
The data is consistent with various confidence indicators in the US economy which have surprised on the upside in the wake of the election of pro-business US President-to-be Donald Trump in November.
The S&P Midcap 400 was up a strong 1.5% to 1694 and the S&P Smallcap 600 advanced by 1.5% to 855.
Pre-Open
US stocks are expected to rise on Wednesday with the Dow looking to launch a fresh assault on the record peak of 20,000 once more with shares of automotives higher ahead of sales figures.
The S&P 500 market bellwether is seen opening 0.2% higher, as are both the tech-heavy Nasdaq Composite and the Dow Jones Industrial Average.
Oil prices are firm, having buoyed the market early on during the Tuesday session but reversing late session and taking the shine off bourse gains too.
US auto sales for December will be released Wednesday by behemoths like Ford (NYSE:F) and GM (NYSE:GM). Sales are forecast to hit a new record in 2016, but the auto sales boom could be leveling off.
Many anticipate a decline in 2017 sales following years of consecutive gains. The data will come hot on the heels of news overnight that Ford scrapped plans for a $1.6bn plant it planned to build in Mexico and instead extend operations at its factory in Michigan.
Ford boss Mark Fields said the decision was partly due to falling sales of small cars and - rather euphemistically given US President-elect Donald Trump’s threat against anyone moving jobs abroad - a "vote of confidence" in Trump's policies.
Ford shares are up 0.7% at $12.68 pre-market while GM is up 0.4% at $35.28.
Meanwhile, Tesla Motors (NASDAQ:TSLA) reported late on Tuesday it fell short of its goal for 80,000 auto deliveries in 2016. The electric car manufacturer delivered 76,230 cars in 2016.
That's still far more than the roughly 50,000 cars it delivered a year earlier.
Shares are indicated down 1.2% at $214.35.
The Federal Reserve is scheduled to release the minutes from its important December meeting at 1400 ET (1900 GMT). That's the meeting where the Fed raised interest rates for only the second time in a decade.
Wall Street will be scrutinising the minutes to see whether Fed members talked about the impact of Trump's stimulus plans on future rate hikes.
A hawkish report is likely to boost banking stocks who yearn for rate hikes in 2017.