To no one’s surprise, the DOW was led higher once again today by astounding gains in financials…along with AAPL and BA, MCD, MSFT. The DOW finished ahead by 113 points today for another record high close at 22,775. The S&P 500 closed up 14 to 2,552 while the NASDAQ celebrated another new high at 6,585, gaining 50 points today.
The NASDAQ was boosted by AMZN, which has been higher every day this week, NFLX which is now at a new all-time high, and PCLN which has also been up every day this week.
Breadth numbers were almost 2 to 1 to the upside. The VIX went reluctantly lower with a decline of .44 down to 9.19. August factory orders came in better than expected with a gain of 1.2%. This resulted in Treasury yields going higher with the 10-year Treasury Note up to 2.35%. The dollar was stronger, the Euro hit a seven-month low at 1.17 and the Japanese yen rose to 112.8. Gold was down a bit to $1,274 an ounce and crude oil was back above $50 a barrel.
One reason for the sudden jump was the House of Representatives passed a budget resolution which could set the stage for a revision of the tax code.
Donald M. Selkin
Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press. These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author.