Dow Jones reaches new high

The blue chip Dow Jones stock index crossed the 18,000 threshold within moments of opening on Tuesday and stayed above the new milestone for the rest of the session, continuing a run of gains that began after last week's US Federal Reserve meeting - or what has been described as a so-called 'Santa Claus rally.'

It comes after the US government reported early Tuesday that the country's economy grew at an annual rate of 5 percent over the third-quarter. This is the fastest pace since 2003. The figure is better than the 3.9 percent estimated by the government and the 4.3 projected by analysts.

The Dow finished at 18,024, up 64 points, or 0.4 percent. The S&P 500 index of smaller cap shares rose three points, or 0.2 percent, to 2,082 - while the tech-rich Nasdaq composite fell 16 points, or 0.3 percent, to 4.765.

Tuesday's record was the Dow's 36th in 2014, according to S&P Dow Jones Indices. The index hit 17,000 for the first time in July, bolstered by strong jobs data.

The US growth figures showed "an economy firing on all cylinders for the first time in many quarters," said Chris Low, chief economist at FTN Financial, speaking to news agency AFP.

However, US durable goods orders fell 0.7 percent in November. This is an indicator of business investment.

Low said this implies fourth-quarter capital spending will decline, perhaps sharply, "suggesting blockbuster growth in the third quarter will be followed by a distinctly slower Q4."

Last Wednesday, the US Federal Reserve kept its benchmark interest rate near zero, and said it would be "patient" before tightening monetary conditions.

jr/jm (AFP, AP)