Dow Makes Another New All-Time High  Image: Bigstock Stocks closed mixed again yesterday with the Dow making another new all-time high, while the S&P and Nasdaq ticked lower. Although, in all fairness, when the S&P and Nasdaq were making new highs the other week, the Dow was not, so a bit of catch-up seemed to be in order. But it should be noted that all of the major indexes are trading at or near their all-time highs, and are within striking distance of breaking out to even higher highs. Earnings season continues, which is good stocks. More focus is being put on stimulus with an expected pass date by mid-March. Since extended federal unemployment benefits will begin to expire on March 14th (just 4 weeks away), there's little time to waste. And the declining virus numbers are also bullish for both the economy and the market, since more big cities can come off lockdown and more businesses can open. Granted, much of the country has to dig itself out from the recent snowstorm, but once it lets up and the snow begins to melt, we should see big pent-up demand unleashed. In other news, yesterday's Retail Sales report showed a better than expected 5.3% m/m increase vs. views for 1.1%. Ex-vehicles and gas, that number jumps up to 6.1%. The good news concerning retail was echoed by the Redbook report which showed same store sales with a y/y gain of 4.0% vs. last month's snapshot of 0.7%.
The Housing Market Index increased to 84 from 83 and views for the same. Business Inventories were up 0.6% vs. estimates for 0.5%. And Industrial Production grew by 0.9% vs. the consensus for 0.5%. Manufacturing Output was also up by 1.0% vs. estimates for 0.5%, while the Capacity Utilization Rate came in at 75.6% vs. last month's 74.5% and views for 74.8%. The economic data continues to show an economy in recovery. That's why stocks have been breaking out to new highs. And why it looks like there's a lot more upside to go. To learn why stocks are expected to soar this year, and how to position yourself to take full advantage of it, be sure to read my latest commentary... Why Stocks Are Poised To Soar Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
Post a Comment
Post a Comment