New Highs Again For The Dow And S&P  Image: Bigstock Stocks closed up yesterday with the Dow, S&P, and Nasdaq all in the green. Both the Dow and the S&P made new all-time highs in the process. In fact, it was their third new high in a row for each of them. A strong earnings season, which is still going on, continues to lift stocks. And so does the strong economic numbers. That was underscored by yesterday's better than expected Weekly Jobless Claims which showed new claims fell by -12,000 to 375K vs. views for 378K. Although, the PPI-Final Demand report showed producer prices up by 1.0% m/m and 7.8% y/y. (Ex-food, energy & trade services, it was up 0.9% m/m and 6.1% y/y.) That was a record high for July. But it's worth mentioning that the Fed sees these higher readings as transitory, brought on by supply disruptions, and worker shortages. They also see base effects contributing to the higher readings. In other words, the small inflation readings last year at this time, are exacerbating this year's higher readings due to the easy comparisons. While the Fed expects these numbers to moderate, it is what it is at the moment.
But the markets didn't seem bothered as they pushed higher yet again. We'll get more earnings today with another 254 companies reporting. And then another 489 next week. We'll also get another look at the economy through the lens of the consumer with the Consumer Sentiment report. With stocks trading at or near their all-time highs, it won't take much to see them break out even higher. So make sure you're taking full advantage of it. Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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