Stocks released the pause button and breezed to fresh highs buoyed by prospects of corporate prosperity and good news on the global economic front. Nasdaq rose +0.77% to 7,208.71 pacing a stock market rally with record highs reached by the three major indexes. S&P 500 added +0.70% led by Viacom up +5.66% and Anadarko Petroleum up +5.58%. Dow rose +0.81% to a record high 25,574.73 led by Chevron up +3.04% and Boeing up +2.45%. Netflix shot up to a record high finishing up +2.22% at $217.24 after Barclays overweighted and gave the subscription service company a $245 price target.
The keenly watched price-weighted gauge, the Dow Jones Transportation Average, said to be reflective of the state of the US economy, rocketed 254 points or +2.30% at 11,284.32. Small cap stocks as measured by the Russell 2000 was also at a record high up +1.73% to 1,586.79. Investors are in a buying mood cheered by a seeming preponderance of good news shaking off any inflationary worries.
But Citigroup chief US equity strategist Tobias Levkovich suggested to investors on Bloomberg that 10, 20% rallies continuing is deeply unlikely. He said their panic and euphoria models show "investor sentiment was getting a bit frothy...in euphoria territory that has hisorically suggested a better than 70% probability that markets are down in the subsequent 12 months."
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Dow 25,574.66 +0.81%
S&P 500 2,767.56 +0.70%
NASDAQ 7,211.78 +0.81%
Russell 2000 1,586.79 +1.73%
NYSE Composite 13,197.52 +0.69%
Gold 1,322.0 +0.21%
Oil WTI $63.58 +0.00%
10-Year Treasury 2.543 +0.11%
Finally, brent crude reached $70 a barrel for the first time since December 2014 before settling 0.1% lower to $69.14 while Western Texas Intermediate crude remained unchanged. Higher oil spurred the S&P energy sector which closed up just over 2%.