Stock gains send Dow Jones industrial average to record high close

Dow Jones industrial average closes at record high

One day after the S&P 500 closed at a new record high, the Dow Jones industrial average did the same thing on Tuesday.

Led by energy companies, materials companies and banks, the Dow rose 120.74 points to close at 18,347.67, putting it above the all-time high close it hit back in May 2015. 

The S&P 500 was also up, adding 14.98 to close at 2,152.14 for its second straight record high.

Meanwhile, the Nasdaq composite index gained 34 points, or 0.7 per cent, to 5,022 to wipe out all of the market's losses for the year.

‚ÄčOn Bay Street, the S&P/TSX composite index reached its highest level in 11 months. Propelled by gains for oil and metals stocks, the index rose by 115.79 points to reach 14,477.67.

On currency markets, the British pound shot up as one element of post-Brexit uncertainty was removed with the selection of Theresa May to take over from David Cameron as British prime minister on Wednesday. The pound was up  2.55 US cents at $1.3252. 

"The political chaos that emerged out of Brexit is starting to subside," said Colin Cieszynski, chief market strategist for CMC Markets Canada.

The Canadian dollar closed at 76.75 cents US, up 0.54 of a cent.

The loonie's rise was driven by a rise in the price for oil. On the New York Mercantile Exchange, the price for benchmark North American oil was up $2.04 US to settle at $46.80 per barrel.

Meanwhile, investors bailed out of gold. The August futures contract for gold closed down $21.30 US at $1,335.30 an ounce.

The yield on the U.S. 10-year Treasury note rose to 1.50 per cent from 1.43 per cent as bond prices fell. The yield
plunged last week as low as 1.32 per cent, an all-time low, according to Tradeweb.