The leading index of United States shares has risen 1,000 points in just 12 days - and six stock market trading sessions, given that Wall Street was closed for Martin Luther King Jr Day on Monday - fuelled by an upswing in the global economy and the prospect of bumper company earnings thanks to Donald Trump's corporate tax cuts. If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. The US Bancorp also provided stronger finance statement than market expectations.
The S&P 500 dipped 0.2 percent to 2,782.14 and the Dow was up 38 points, or 0.2 percent, to 25,841.36 as of 2:04 p.m.in NY.
ANALYST VIEWPOINT: "U.S. equity markets flip-flopped returning from the Martin Luther King Day holiday and coupled with the softer oil prices, set Asian markets for a day of contemplation", Jingyi Pan of IG said in a commentary.
Fashion house Hugo Boss was among the biggest gainers in Europe, up 3.7 percent, after it reported a rebound in growth at its own stores, a jump in online sales and a recovery in the US. A handful of distribution days in a short period can signal trouble in the stock market.
Main Street investors, who have been on the sidelines for most of the nine-year bull run after getting burned in the last market crash in 2008-09, are turning more optimistic.
Trump will stay in Washington until spending bill passes, reports say
Several Democrats have already announced their opposition to the bill. "I'm just exhausted of voting for CRs", said Sen. Republicans and Democrats were scrambling to avert a shutdown, which could come at midnight Friday if no deal is made.
Industrial stocks rose after the Federal Reserve said US industrial production increased 0.9 percent in December. Fund managers are nearly fully invested with just 4.4 percent of funds in cash in January, a five year low. The company's stock ended an increase of 1.7%.
And oil stocks helped push the Dow lower, with Chevron falling 1.2 per cent and Exxon Mobil giving up 0.6 per cent.
In another sign of optimism, Wall Street analysts are boosting their earnings forecasts for USA companies at the fastest pace in 10 years, according to Bespoke Investment Group.
More than three quarters of the 26 S&P 500 companies that have reported so far have topped profit estimates, according to Thomson Reuters I/B/E/S. Hong Kong's Hang Seng rebounded from earlier losses to gain 0.3 percent, closing at 31,983.41 while the Shanghai Composite index added 0.2 percent to 3,444.67.44. However, Brad McMillan of the Commonwealth Financial Network warned that the market was showing too much exuberance and that this could be risky. It ended above 25,000 on January 4.