Dow 32,000 and the stocks powering the run
Dow 32,000 is all about cyclical stocks
The Dow Jones Industrial Average moved past its new milestone: 32,000 in what may be one of the strongest signs the U.S. economy is truly on a post-pandemic recovery track.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44296.51 | +426.16 | +0.97% |
The benchmark of 30 blue-chip stocks crossed that level Monday, before pulling back, in what is the quickest 1,000 point jump, 40 trading days since reaching 30,000-31,000 which took 29 trading days, as tracked by Dow Jones Market Data Group.
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The Senate's passing of the $1.9 trillion COVID-19 stimulus over the weekend also serving as a fresh catalyst.
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DJIA Exceeds 32,000
The rally, which flirted with 32,000 in late February, is being driven by key cyclical names, those that may benefit the most when the economy is on the upswing as it re-opens across the nation in tandem with the vaccine rollout.
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Jason Katz, UBS managing director and senior portfolio manager, told FOX Business' "Varney & Co." his firm is telling clients “any new money should go pro-cyclical," he said at the time.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 602.79 | +6.74 | +1.13% |
| JPM | JPMORGAN CHASE & CO. | 248.55 | +3.79 | +1.55% |
Goldman Sachs, benefiting from trading and initial public offerings, has been the biggest contributor adding over 295 points, the investment firm also led the jump to 30,000. JPMorgan shares are also trading at record levels.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AXP | AMERICAN EXPRESS CO. | 301.35 | +8.44 | +2.88% |
| V | VISA INC. | 309.90 | +0.04 | +0.01% |
American Express has added over 179 points, on views consumer spending will pick-up. That stock hitting a fresh record, along with Visa.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CAT | CATERPILLAR INC. | 397.47 | +7.75 | +1.99% |
| CVX | CHEVRON CORP. | 162.36 | +0.75 | +0.46% |
Other contributors include Caterpillar, a beneficiary of building and construction, which added 170 points. As projects come back online post-COVID-19, CAT should benefit, also a looming infrastructure plan would be a nice tailwind.
And Chevron, a smaller rival to Exxon Mobil, has added 127 points. Warren Buffett's Berkshire Hathaway took a new stake in the oil major earlier this year to the tune of 48.4 million shares. Buffett is known for his longterm investing.
DISNEY+ SUBSCRIBERS SOAR TO 94.9 MILLION
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 115.67 | +0.94 | +0.82% |
Also, Disney, which has been hampered by the closing of its parks due to the COVID-19 pandemic, added 125 points.
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There is lots of buzz as the parks reopen, which could come as soon as April 1 in California, Also, the entertainment giant's streaming service Disney+ attracts new users, currently nearing 100 million.