While you were sleeping: UPDATED Wall Street reaches fresh record highs

Wall Street moved higher, touching fresh records, amid better than expected corporate results including from Wal-Mart and Home Depot.

At the close of trading in New York the Dow Jones Industrial Average surged118.85 points, or 0.6%, to 20,743.00. The Standard & Poor's 500 Index rose 0.6% to 2365.38 and the Nasdaq Composite Index advanced 0.5% to 5865.95. All three indices hit all-time highs.

"There is no doubt in anyone's mind the market has become over-extended and is due for a pullback," Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey, told Reuters.

"That said, when you have this kind of momentum, it is very hard to sit on the sidelines."

The US dollar also rose as did the price of oil, up 1.8% to $US54.72 a barrel.

The Dow's rise was led by gains in Wal-Mart and Boeing shares, trading 3.2% and 1.7% higher respectively.

Wal-Mart reported quarterly US sales that exceeded expectations.

"A number of things helped Wal-Mart over the holiday quarter," Neil Saunders, managing director of retail research firm Global Data, told Reuters.

"Foremost among these was the strategic decision to invest in price and to heavily promote this fact to consumers."

Fried chicken deal
In the latest deal news, shares of Popeyes Louisiana Kitchen soared after Canada's Restaurant Brands International, owner of the Burger King and Tim Hortons brands, agreed to acquire the quick-service restaurant chain that specialises in fried chicken for $US1.8 billion.

Under the deal, shareholders of Atlanta-based Popeyes will receive $US79.00 in cash per share, the companies say. The transaction is expected to close by early April 2017.

"Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world," Restaurant Brands chief executive Daniel Schwartz says.

"With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and the strong US and international prospects for growth."

Popeyes shares traded 19.2% higher at $US78.80, while Restaurant Brands shares added 7.4% in Toronto.

Meanwhile, Kraft Heinz shares dropped in their first day of trading after the US company backed by Berkshire Hathaway's Warren Buffett and 3G Capital Partners withdrew its proposal for a combination with Unilever. Kraft shares fell 3.8% while Mondelez International rose 4.3%.

US markets were closed on Monday for the Presidents Day holiday.

Europe's Stoxx 600 Index finished the session with a 0.6% increase from the previous close, bolstered by better than expected manufacturing data for the euro-zone.

France's CAC 40 Index gained 0.5%, while Germany's DAX Index rallied 1.2%, the latter bolstered by advances Siemens and Adidas shares. The UK's FTSE 100 Index dropped 0.3%, as HSBC shares slid on disappointing results.

(BusinessDesk)