Solid earnings, stronger economic growth and hopes that President Donald Trump may be able to make progress on tax cuts have helped the market rally this year.
The S&P 500 and Nasdaq also hit record closing highs.
The Dow Jones Industrial Average rose 160.16 points, or 0.7 per cent, to end at 23,157.6, the S&P 500 gained 1.9 points, or 0.07 per cent, to 2,561.26 and the Nasdaq Composite added 0.56 points, or 0.01 per cent, to 6,624.22.
'Today the catalyst is clearly IBM ... which appears to have turned the corner. It gave the Dow the boost to stay over 23,000,' said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
The financial index jumped 0.6 per cent, led by bank stocks recovering from recent post-earnings losses. Bullish calls by brokerages helped to support the bank shares.
Bank shares had run up ahead of recent results, which resulted in some selling following the earnings news, said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
Abbott rose 1.3 per cent after the company's profit beat estimates on strong sales in its medical devices business.
After the bell, shares of eBay fell 4 per cent following results.
Advancing issues outnumbered declining ones on the NYSE by a 1.09-to-1 ratio; on Nasdaq, a 1.32-to-1 ratio favored advancers.
About 5.6 billion shares changed hands on U.S. exchanges, below the 5.9 billion daily average for the past 20 trading days, according to Thomson Reuters data.
