Apple Pushes Dow to Historic Close Past 22,000 Point Level!
The Dow Jones crossed over the key 22,000 point level on Wednesday for the first time in history against the backdrop of optimism about the stellar numbers of Apple (AAPL), a key stock on the index. The Dow first scaled past the 20,000 point level at the end of this past January, and then broke up past the 21,000 point level slightly over a month later on March 1st. Apple, the world’s largest publicly trading company, soared 4.73% yesterday to a historic high, riding the wave of its Q2 results. AAPL is now trading up 36% year-to-date.
The iPhone maker helped push the Dow to close at a historic high, despite the fact that other tech stocks lost altitude; Microsoft (MSFT), Facebook (FB) and Google (GOOGL) all took a spill after their strong gains year-to-date had earlier pushed the tech sector to record the best performance on the market so far this year.
Some investors believe that the time has come for some tech firms to spend less money on open stock market buybacks and more on technology, both to improve company efficiency and justify further gains in Silicon Valley stocks on the heels of the stunning 23% gains year-to-date in tech stocks (XLK).
The Dow has risen 11% in 2017, closing up yesterday for the 6th straight day, even with Wall Street and investors losing faith that President Trump and the Republican-controlled Congress can succeed in cutting taxes and boosting infrastructure spending this year.
Until now, two-thirds of S&P 500 companies have reported their quarterly numbers and 72% of them have beaten out analyst forecasts.
Daily Summary: The Dow Jones rose 0.24% to a new high at the 22,016.24 point level. The S&P 500 tacked on 0.05%, the NASDAQ ending flat.
The economic figures released yesterday revealed that the private job market had tacked on 178 thousand positions in July, after having added on 191 thousand in June. Economists had expected a reading of 185 thousand new positions for July. The official governmental employment report, which includes both the private and public sectors, will be released on Friday.
One of the stocks that stood out in yesterday’s trading was AutoNation (AN) which fell 7.17%, the largest automotive retailer in the U.S. reporting lower than expected earnings for last quarter.
Cardinal Health (CAH) fell 8.2% after the drug distributor released 2018 guidance that came out beneath analysts’ forecast.
About 6.5 billion shares changed hands on U.S. exchanges, above the 6.1 billion average over the last 20 trading days.
Thursday: The Dow’s rally into uncharted territory could also continue into today. There are tens of companies that will be reporting today in one of the biggest waves of the current earnings season. The Economic Diary is also jam-packed with initial unemployment claims and the ISM Supply Managers’ service sector index. Investors’ eyes are now all trained on the official employment report that will be released tomorrow.
A downpour of reports will be coming out before the opening bell: AGN, TEVA, CLX, YUM, AET, BID, K, APC. After closing, be primed for the numbers of KHC, VIAB, ATVI, and SHAK.
Some market analysts are already concerned about the end of the earnings season and the vacuum that will be created in the market after Labor Day, with the market likely to be vulnerable to the summer’s seasonal weakness. The earnings season was a good catalyst for the market, even for the market skeptics. As of now, earnings numbers are expected to record 11.4% growth, outpacing the projection for 8% growth from back on July 1st.
The economic figures that will be released today will include initial unemployment claims at 8:30 N.Y. time and the ISM Supply Managers’ service sector index at 10:00, factory orders to be released at the same hour.
Thursday’s Hot Stocks: TEVA, YUM, BID, K, APC, TSLA, CAKE, PRU
Have a great trading day!
|Monday||10:00||Pending Home Sales||–||Medium|
|Wednesday||8:15||ADP Employment Change||–||High|
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New York Strategy Swing
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No.1 – NTAP
|Sector||Technology | Data Storage Devices|
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|Sector||Consumer Goods | Textile – Apparel Footwear & Accessories|