USA stocks open higher, hit records on round of strong corporate results

US: Wall Street opens at record on strong earnings

Stocks opening higher on Wall Street

Led by Boeing and AT&T Wednesday morning, and following huge bottom line surges by the major USA banks, investors are getting a magnificent ride as all three major indices, the DOW, the S&P 500, and NASDAQ all opened in record territory.

Stocks that pay big dividends were particularly strong after the Federal Reserve paused in its slow-moving campaign to lift interest rates, as Treasury yields sank lower.

Boeing rose 7 percent, boosting the Dow, while AT&T's 3.8 percent gain made it the top stock on the S&P 500.

The S&P 500 index rose 2 points, or 0.1%, to 2,479, with eight of its 11 main sectors trading higher. Both are at record highs. South Korea's Kospi added 0.2 percent to 2,439.39 and the S&P ASX 200 of Australia climbed 0.3 percent to 5,795.30.

FEDERAL RESERVE: The Federal Reserve's meeting Wednesday ended with officials saying it may begin paring the massive $4.5 trillion balance sheet it built up following the financial crisis "relatively soon", which some analysts took to mean September.

"Any unexpected surprises from the policy statement may come in the form of inflation concerns as the central bank acknowledges the fall in inflation and the impact it has on reaching its 2 % inflation target".

YIELDS: The yield on the 10-year Treasury note edged down to 2.32 percent from 2.33 percent late Tuesday.

Beverage maker Coca-Cola fell 1.4 percent after its quarterly profit dropped 60 percent.

Lower bond yields make the dividends paid by stocks more attractive, and the biggest dividend payers picked up momentum following the Fed's announcement. The euro rose to $1.1759 from $1.1637, and the British pound rose to $1.3152 from $1.3117. Among the most notable names that reported, Boeing Co. and Coca-Cola Co. both topped consensus forecasts; Boeing shares gained 5.4% while Coca-Cola fell 1.6%. It jumped 20.99 dollars, or 9.9%, to 233.45 dollars.

Shares of Coca-Cola rose, up 1 percent as of 2.51pm in NY, after the company posted quarterly profit that bettered analysts expectations, bolstered by low- and no-calorie sparkling soft drinks as well as non-carbonated beverages.

"We've seen some pretty strong results from important companies", said John Wilson, senior equity portfolio manager at Columbia Threadneedle.

"Our teams are delivering better performance in every segment of the business, which is reflected in our strong second-quarter results and improved 2017 outlook", Chief Executive Officer Dennis Muilenburg said in a statement. "That's encouraging, especially given the fact that markets have had a pretty good move".

Mr Wilson said he has noticed some particularly encouraging comments from companies about improvements they've seen in their European businesses.

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