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“Recovery” is no longer a word relevant to the Dow Jones Industrial Average or the Standard & Poor’s 500. Both set new record highs in trading on 02 April. “Rebounding” might be more appropriate, especially as the U.S. sports scene is looking forward to the NCAA Final Four this weekend, in a sport where it is axiomatic that “Rebounding wins games.”
The Dow hit an intra-day high of 14,684, up 89 points from the previous day, before closing at 14,662. The S&P closed at 1,570, also an all-time record. It was just four years ago in March 2009 that the DJA fell to below 6,550 points.
Analysts point to automotive manufacturers (Ford) and the healthcare sector (Human and United Health) as contributing factors to the increase. One particularly salient insight highlights the potential for a continuation of reaching even loftier heights. The Dow has not logged a decline in April since 2005. Dan Greenhaus, Chief Global Strategist at BTIG, said, “There’s and incredible sense that things are starting to come together and things that have been supportive of the recovery all remain in place.”
Thomas Lee, Chief U.S. Equity Strategist at JP Morgan added that “If investors are going to be nervous, Europe’s going to be an excuse. But, at the end of the day, I don’t think this is a big enough threat to say that the bull market is over.”
Cautious optimism seems to be the best suggestion because no one has even been at these lofty heights before now.
