Dow Jones at new high

Wall Street extended its October rally today as US investors grew more optimistic about earnings reports and a decline in oil bolstered hope for higher consumer spending.

The Dow Jones industrials crossed 12,100 for the first time and reached a new record high close.

Dow component and Asda parent company Wal-Mart Stores, which pleased investors by announcing plans to cut capital spending to improve profits, helped the blue chips to their new high.

Strength from International Business Machines, Hasbro, and Xerox also fed the advance. Just halfway through third-quarter earnings season, generally upbeat reports have instilled new confidence about the future in investors.

“The blue chips have absolutely outperformed most markets, and this was an extension of that trend,” said Steven Goldman, chief market strategist at Weeden & Co. “I don’t think things are overdone. Investors are looking ahead thinking an economic slowdown is forthcoming, and its safer to get into household names and not new companies.”

Blue chips resumed a three-month rally after stalling on Friday; the Dow, which had already risen 233 points in October before today’s trading. The Dow, which crossed 12,000 just last week, also reached a new trading high of 12,125.16. The broader market also gained as investors shrugged off concerns about the Federal Reserve’s decision on interest rates later this week.

The Dow Jones industrial average rose 114.54, or 0.95%, to 12,116.91.

The Standard & Poor’s 500 index rose 8.42, or 0.62%, to 1,377.02, and the Nasdaq composite index rose 13.26, or 0.57%, to 2,355.56.