History says Dow will keep climbing
Veteran NYSE trader Teddy Weisberg of Seaport Securities points to the Dow’s history to measure the likelihood of the market pushing even higher.
The S&P 500 Index (SNC:SPX) slid nearly 3 points to 1,623. On Tuesday, it closed at a record for the fourth straight session.
The Nasdaq Composite (NASDAQ:COMP) fell more than 5 points to 3,391.
“We have to expect the market to pull back a little bit, but as long as these pullbacks are very shallow in size and scope that’s very positive for the markets,” said Adam Sarhan, chief executive of Sarhan Capital, in emailed comments.
China swung to a trade surplus in April, data that came in better than economists expected and which could ease some concerns over growth in the country. Of course, the data has also been volatile, and there has been some skepticism over its accuracy. Still, the trade numbers boosted Asian markets, including Japan, which rallied towards five-year highs.
European stocks edged higher.
The Dow industrials touched Tuesday an intraday high of 15,056.67 before closing at a record 15,056.20, a gain of 87.31 points. The S&P 500 index closed at a record for the fourth straight session, up 8.46 points to 1,625.96. Read: Dow’s hitting new highs — but are you?
Equities are in a “sweet spot and we continue to see no reason why global markets can’t go higher from here in the medium term, especially as the deepest pullback in the S&P 500 since the November lows has been 3.8%,” said Chris Weston, chief market strategist at IG, in a note.
In a note to investors dated May 7, analysts at Morgan Stanley predicted the S&P 500 will end the year at 1,600. New York University economics professor Nouriel Roubini said late the following day that the market is not looking at a bubble, but markets could be setting up for a major selloff due to a “huge rally in risk assets” over the next two years.
Dow component Walt Disney Co. (NYSE:DIS) said late Tuesday its fiscal second-quarter profit rose a better-than-expected 32%.
AOL Inc. (NYSE:AOL) said its first-quarter earnings rose 23%. Shares fell 5% to $39.13.
Shares of Whole Foods Market Inc. (NASDAQ:WFM) jumped 9% to $101.05. The upmarket supermarket chain announced a two-for-one stock split and raised its outlook for the year, as it reported a rise in second-quarter earnings on Tuesday.
Shares of Electronics Arts Inc. (NASDAQ:EA) surged 10% to $20 after the video game maker issued a strong fiscal 2014 year outlook after the market closed Thursday. EA also posted fiscal fourth-quarter earnings, which were in line with reduced expectations
Tesla Motors (NASDAQ:TSLA) and Groupon Inc. (NASDAQ:GRPN) are among firms reporting results after the bell.