Dow hits record as stock market rally extends into 5th week

NEW YORK — The Dow Jones Industrial Average hit a record on Monday, joining other market gauges at all-time highs, as the stock market’s rally carried into a fifth week.

Oil producers, banks and other stocks that do well when the economy is strengthening again led the way.

It’s a notable shift in leadership following months of struggles for what Wall Street calls “cyclical” stocks.

Behind the resurgence for cyclicals are rising hopes that the United States and China are making progress in negotiations on their trade dispute. Reports last week also showed that the job market is continuing to grow, corporate profits aren’t doing as badly as Wall Street expected and interest rates will likely remain low for a while.

Even in manufacturing, which has been hit particularly hard by President Trump’s trade war, investors saw some hopes that things may be hitting bottom soon.

The Dow climbed 114.75 points, or 0.4%, to 27,462.11 and surpassed its prior all-time high set in July.

The S&P 500 rose 11.36, or 0.4%, to 3,078.27, and the Nasdaq composite added 46.80, or 0.6%, to 8,433.20. Both the S&P 500 and Nasdaq also clinched records.

“Investors are doing what we’re theoretically supposed to be doing: We’re looking out at the next 12 to 18 months and investing on the basis of where it’s going, not on where we’re at today,” said Tom Stringfellow, chief investment officer at Frost Investment Advisors.

“We are investing on expectations that whatever the worst is, we’re there now.”

from Boston Herald https://ift.tt/34sKWk4