Business

Dow higher after US climate deal withdrawal

NYSE traders Image copyright Reuters

Wall Street closed higher on Thursday following confirmation of President Trump's plan to withdraw from the Paris climate deal.

Several business executives had argued against the move, but President Trump said it would be good for the US economy.

The Dow Jones Index ended 135 points higher at 21,144.

Business leaders including GE's chief executive Jeff Immelt criticised the move.

Mr Immelt said he was "disappointed". Elon Musk, founder of Tesla, confirmed he would leave the President's advisory council in response to the move.

Positive numbers on hiring in the private sector boosted share prices. Monthly jobs figures are due out on Friday.

Analysts said investors had already factored in the widely expected move to withdraw from the Paris accord.

The Nasdaq Composite broke through to a new record high, and closed 48 points or 0.7% higher at 6,246.

The broader S&P 500 also reached a new high, closing up 18 points or 0.76% at 2,430.

The ADP jobs report showed private payrolls increased by an unexpectedly high 253,000 in May.

The private sector jobs numbers are more volatile than the non-farm payroll figures out tomorrow, but the markets are seeing them as a positive indicator for the economy.

Stronger jobs numbers would increase the chances of an increase in interest rates at the next meeting of the Federal Reserve on 14 June.

Separately, the Institute for Supply Management said its index of national factory activity ticked up to 54.9 last month from 54.8 in April.

West Texas Intermediate Crude Oil fell slightly. It was down $0.23 or 0.5% at $48.09 a barrel.

American Express shares closed 1.7% higher after it won a bid to become the exclusive credit card issuer for Hilton - the first new deal it has signed since 2015.

Shares in telecoms group Verizon closed 0.28% lower after reports emerged that its $100bn bid for the cable TV giant Charter had been turned down.

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