Bullish mood boosts Dow above 19,000 milestone

U.S. stocks finished at record highs for a second straight session Tuesday, with the Dow Jones Industrial Average closing above the psychological mark of 19,000 for the first time ever.

The Dow Jones Industrial Average rose 67.18 points, or 0.35 percent, to 19,023.87. The S&P 500 added 4.76 points, or 0.22 percent, to 2,202.94. The Nasdaq Composite Index gained 17.49 points, or 0.33 percent, to 5,386.35.

Economic data came out positive. U.S. existing-home sales ascended in October for the second straight month and eclipsed June's cyclical sales peak to become the highest annualized pace in nearly a decade, according to the National Association of Realtors Tuesday.

Total existing-home sales grew 2.0 percent from an upwardly revised 5.49 million in September to a seasonally adjusted annual rate of 5.60 million in October, beating market consensus of 5.42 million.

"The unexpected surge in October is likely a result of lingering demand from the summer selling season even as limited supply and rising prices has largely kept a lid on home sales growth for the past year," said Sophia Kearney-Lederman, an economic analyst at FTN Financial.

Meanwhile, fears about a December rate hike abated recently, especially after fiscal stimulus remarks from Fed Vice Chairman Stanley Fischer, even though analysts widely hold that the Fed would hike interest rates in its December meeting.

"Certain fiscal policies, particularly those that increase productivity, can increase the potential of the economy and help confront some of our longer-term economic challenges," Fischer said in a Monday speech before the Council on Foreign Relations.

The optimism that the Organization of Petroleum Exporting Countries will finalize an output freeze deal next week also provided some upward jolts to the stock market.

On Monday the energy sector leapt 2.20 percent to lead the advancers in the S&P 500's ten sectors, as oil prices surged about 4 percent to their highest level in three weeks. Oil prices wavered around their three-week highs in a tight range Tuesday.

Analysts believed that U.S. stock markets were still in a so-called "Trump rally" after Donald Trump won the presidential election earlier this month.

"When you look at the (Trump's) overall framework of policy, the markets are betting that with the tax cuts, with infrastructure spending, with a little bit of deregulation, that is the driving force expecting further growth," John Silvia, chief economist at Wells Fargo, said on CNBC.

The Dow has risen 3.8 percent since the Election Day, after increasing eight times in the past ten sessions.

"They (investors) are hoping to see deregulation, tax relief, and maybe some bilateral trade agreement. I get the sense that wants to show a lot of accomplishments. I don't think he (Trump) can get the full package down till probably summer or even the fall," Legendary New York Stock Exchange floor trader Arthur Cashin said Tuesday. Enditem