My thinking here is that the market has finally run out of steam on this rally. It has come a long way without much of a pullback. Nothing goes up forever. However, trying to time the exact turning point always remains a mystery, as despite what some talking heads on CNBC think, as the saying goes, the market can remain irrational longer than you can remain solvent. So, best to flow with it.
I have no idea why it is continually pushing record territory every day bar yesterday, but I am happy to let it run as far up as it wants. 1925 would be the next zone should it march higher. But alas I think it will turn tomorrow. We’ll see…
U.S. stocks advanced for a fifth day in six on Thursday, pushing the S&P 500 to an all-time high, as Wall Street tracked falling Treasury yields while betting the U.S. economy would rebound from its first contraction in three years.
The Commerce Department found gross domestic product declined at a 1 percent annualized rate in the first quarter. Analysts had estimated a 0.4 percent contraction.
Another report had initial jobless claims falling by 27,000 to 300,000 last week, compared to estimates of 326,000. The latest number is “a positive,” and brings the four-week average to 311,500, the lowest since August 2007, offered Peter Boockvar, chief market analyst at the Lindsey Group.
Separate data had pending home sales up 0.4 percent in April, below expectations.
fter a 12-point fall, the Dow Jones Industrial Average gained 0.4 percent, with Merck & Co. leading blue-chip gains.
The S&P 500 hit an intraday record for a third straight session, and closed at an all-time high, up 0.5 percent, with materials and consumer staples faring best and telecommunications the leading laggards among its 10 major industry groups.
The Nasdaq gained 0.5 percent.
For every stock declining, nearly two gained on the New York Stock Exchange, where 394 million shares traded as of 3:50 p.m. Eastern. Composite volume surpassed 2.3 billion.
FRIDAY: Personal income & outlays, consumer sentiment, farm prices
News Sources: CNBC and CNN Money