Wall Street surged on Wednesday, with the Dow Industrials and S&P 500 hitting fresh records, as equities continued their march upward after the election of Donald Trump as U.S. president, and a new high for transportation stocks added to the bullish tone. Bobbi Rebell reports.
The Dow hitting its 12th record close since the election. The S&P 500 also at a high, powered in part by gains in telecom and real estate stocks, which pay high dividends. The Dow transports also at a record for the first time in two years. But comments by President-elect Donald Trump in Time magazine that he would bring down drug prices hurt stocks in the healthcare sector. Trump's comments have become a driver, both, positive and negative, for stocks: Jane Barratt is the CEO of investing platform GoldBean: SOUNDBITE: JANE BARRATT, CEO, GOLDBEAN (ENGLISH) SAYING: "It's really a whole new world in terms of headline risk. It is another whole risk that, both, investors and companies, need to look out for in terms of it can have a real impact in the short term. Obviously, there is not enough data to say long term whether stocks will bounce back from mentions like this, but it is a whole new world, and it really does change the game of the media." The leaders of AT&T and Time Warner, which are planning an $85 billion merger, told U.S. lawmakers the deal would increase innovation, and be better for consumers. Donald Trump, whose administration will decide whether to approve the merger, has said the deal should be blocked. Consumers may soon be tempted to pay even more for Starbucks coffee. The company says it would add several high-end coffee shops - Reserve Roastery and Tasting Room - in the next five years, boost the number of Reserve coffee "bars" selling the premium coffee within its cafe's and add 12,000 new stores globally by 2021. Turning to Europe: banking stocks continued to rally lifting the major country indexes.