August 07, 2017
Dow hits all-time intraday high, builds on record-setting week
The Dow Jones industrial average hit an intraday record shortly after opening Monday, adding to last week's record-setting performance.
The 30-stock index got a lift from Boeing, which contributed most of the gains. The S&P 500 alternated between small gains and losses, with consumer staples outperforming and energy lagging. The Nasdaq composite outperformed, rising 0.3 percent.
The Dow posted record closing highs all of last week as a stronger-than-expected earnings season carried on.
Calendar second-quarter earnings have grown 10.1 percent as of Friday, according to data from FactSet. S&P Capital IQ originally forecast earnings to grow by 6.2 percent.
"It's really hard to see anything that could send the market for a stumble," said Bruce McCain, chief investment strategist at Key Private Bank. "Earnings have been pretty good. ... At some point we're going to hit a roadblock but right now it's hard to see what that will be."
This week will be filled with retail companies releasing quarterly results, including Michael Kors, Macy's and Nordstrom. Media giants Disney and News Corp are also slated to report this week.
Equities have had a stellar year. In 2017, the S&P and the Nasdaq have climbed 10.6 percent and 17.9 percent, respectively. The Dow has also advanced 11.8 percent entering Monday's session.
"There is still juice left for equity investors," said Andrea Cicione, head of strategy at TS Lombard, in a note. "Increasingly global US companies will benefit from a robust international economy even if a maturing US cycle holds back domestic nominal GDP growth. While other markets may outperform, it's too early to throw in the towel on US stocks."
Investors have been able to shrug off news about turmoil in Washington, especially within the Trump administration. Wall Street has also been able to look past the lack of progress in tax reform, one of the key catalysts for the market after President Donald Trump's election victory.
Economic data have also been mostly positive lately. Last week, the Labor Department said the U.S. economy added 209,000 jobs last month, much more than expected. Wage growth, however, remained unchanged.
There are no major data due Monday, but two top Federal Reserve officials are scheduled to speak: St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari.
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