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Sarhan in CNBC: Dow hits new all-time intraday high as market puts Brexit fears behind

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50 Park Capital white background LOGOThe S&P 500 moved higher in record territory Tuesday and the Dow Jones industrial average broke above its all-time intraday high as fears eased over Brexit and Japan signaled more economic stimulus.
The blue-chips index reached the milestone on the heels of the S&P 500 closing at an all-time high Monday. In midday trade Tuesday, the Dow was about 130 points higher, with Goldman Sachs contributing the most gains.
The S&P 500 traded about 0.8 percent higher, led by a more than 2 percent rise in energy and materials. Peter Cardillo, chief market economist at First Standard Financial said a rise in oil prices were contributing to stock gains Tuesday.
U.S. crude rose about 4.2 percent to trade near $46.60, after falling more than 1 percent Monday. However, an oil inventory glut and a drop in bullish bets by investors weighed on prices.
“I think the fears of Brexit have subsided, but I think that’s premature,” said Maris Ogg, president at Tower Bridge Advisors. “I’m glad the U.K. has gotten a new leader, … but I don’t think this will go away.”
Interior Minister Theresa May is set to become the U.K.’s prime minister on Wednesday. Stock markets across the globe have risen sharply, after a steep sell-off, following the United Kingdom’s decision to leave the European Union.
“In the past two weeks, post Brexit, the S&P 500 has vaulted over 8 percent,” said Adam Sarhan, CEO at Sarhan Capital. “Typically, a 10 percent move for the entire year is considered normal.”

Meanwhile, in Japan, Prime Minister Shinzo Abe ordered new stimulus after his coalition won an election in Japan’s upper chamber by a landslide. Japan’s Nikkei 225 rose nearly 2.5 percent overnight, while the yen erased all of its post-Brexit gains against the dollar.
“In the short term, I think it’s going to help, but in the long term, we’ll see,” said JJ Kinahan, chief strategist at TD Ameritrade. “I feel like a lot of people are getting themselves into situations that they can’t get out of.”
“Japan sent a powerful message to the market,” First Standard’s Cardillo said. “So, the rally continues.”
Stocks rallied Monday, with the Nasdaq and the Dow posting its best closes of the year.
Scheduled speeches by several Federal Reserve officials were also on investors’ radar.
St. Louis Fed President James Bullard said in prepared remarks Tuesday he still believe one rate increase will be needed for the foreseeable future. Bullard, a voting member of the U.S. central bank’s rate-setting committee, recently shifted his view of monetary policy, concluding that the U.S. had entered a persistent period of low growth, low inflation, and low unemployment.
Minneapolis Fed President Neel Kashkari and Cleveland Fed President Loretta Mester are scheduled to speak after the market closes.
Ahead of the open, Fed Governor Daniel Tarullo said that better regulation on short-term funding is needed, adding that the U.S.’ post-crisis work is not completed with out such regulations.
On the data front, wholesale inventories data for May showed a 0.1 percent gain, in line with expectations. Meanwhile, the Job Openings and Labor Turnover Summary (JOLTS) report for May showed openings were down to 5.5 million, from 5.79 million in April.
U.S. Treasury yields rose, with the benchmark 10-year yield trading around 1.49 percent and the two-year note yield holding near 0.67 percent. Ten-year yields recently hit an all-time low.
The dollar traded about 0.1 percent lower against a basket of currencies, with the euro trading near $1.109 and the British pound near $1.33.
Investors also digested Alcoa quarterly results, which marked the unofficial start to the earnings season, as the former Dow component beat estimates on both the top and bottom lines Monday after the close.
On Thursday, financial giants JPMorgan Chase and BlackRock are scheduled to post results before the bell, along with Delta Air Lines.
European stocks traded higher, as the pan-European Stoxx 600 index gained about 1 percent. Asian equities also rose broadly.
DJIA Dow Industrials 18342.39
115.46 0.63%
S&P 500 S&P 500 Index 2154.16
17.00 0.80%
38.00 0.76%
The Dow Jones industrial average traded 130 points higher, or 0.71 percent, at 18,357, with DuPont leading advancers and Wal-Mart the greatest laggard.
The S&P 500 rose 17 points, or 0.81 percent, to 2,154, with materials and energy leading eight sectors higher, with utilities and consumer staples the only laggards.
The Nasdaq rose 41 points, or 0.84 percent, to 5,030.
About five stocks advanced for every delincer at the New York Stock Exchange with an exchange volume of 428 million and a composite volume of 1.985 billion in midday trade.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded higher, near 13.6.
Gold futures for August delivery fell $22.30 to $1,334.30 per ounce.
—Reuters contributed to this report.
On tap this week:
*Planner subject to change.
Earnings: Adtran
1 p.m. 10-year note auction
6:30 p.m. Minneapolis Fed President Neel Kashkari
9:30 p.m. Cleveland Fed President Loretta Mester on financial stability
Earnings: CSX, Yum Brands
8:30 a.m. Import prices
9 a.m. Dallas Fed President Rob Kaplan on economy
1 p.m. 30-year bond auction
2 p.m. Federal budget; Beige book
6 p.m. Philadelphia Fed President Patrick Harker on economy
10:30 p.m. Cleveland Fed’s Mester on economy
Earnings: JPMorgan Chase, BlackRock, Delta Air Lines, Taiwan Semiconductor, Progressive, First Republic Bank
8:30 a.m. Initial claims; PPI
10 a.m. St. Louis Fed President James Bullard
11:15 a.m. Atlanta Fed President Dennis Lockhart
1:15 p.m. Kansas City Fed’s George on economy
7 p.m. Dallas Fed President Rob Kaplan on economy and policy
Earnings: Citigroup, Wells Fargo, US Bancorp, PNC, Shaw Communications
8:30 a.m. Retail sales, CPI, Empire State survey
9:15 a.m. Industrial production
10 a.m. Consumer sentiment; Business inventories
1:15 p.m. Minneapolis Fed’s Kashkari and St. Louis Fed’s Bullard in discussion