The Dow Jones industrial average rose sharply on Wednesday, closing above 23,000 for the first time, after tech giant IBM reported better-than-expected quarterly results. The 30-stock index surged 160.16 points to 23,157.60, recording intraday and closing all-time highs. The index first broke above 23,000 on Tuesday, but closed just below the mark. The Dow traded above 23,000 just 76 days after first breaking above 22,000.

"Ultimately, this is just a psychological factor," said Jeff Carbone, managing partner of Cornerstone Financial Partners. But "what it does is bring up the question of how much higher can we go?" "All the economic data suggests we have more room to the upside," he said. "I wouldn't be surprised if we got to 24,000 by year-end," especially if we get tax reform." Bank stocks also surged Wednesday, with SPDR S&P Bank exchange-traded fund (KBE) advancing 0.7 percent. Shares of Goldman Sachs and JPMorgan Chase rose 2.5 percent and 0.4 percent, respectively. IBM posted adjusted earnings per share of $3.30 on revenue of $19.15 billion Tuesday after the close. Analysts polled by Reuters expected the company to report earnings of $3.28 per share on sales of $18.6 billion. The company's stock surged 9 percent and recorded its biggest one-day rise since January 2009. "IBM turned in a solid quarter last night and we continue to believe the company will emerge from this transition a much stronger IT organization. Moreover, IBM's 4.1% dividend yield and modest valuation should attract more value investors," Drexel Hamilton analyst Brian White said in a note Wednesday.

Trader on the floor of the New York Stock Exchange. Brendan McDermid | Reuters