Dow Sets Another Record High — Consumer and Airline Stocks Making Waves
U.S. markets continue their upward trend, spurred by a combination of ridiculously low interest rates and the anticipation of post-pandemic consumer spending. On Monday, the Dow Jones Industrial Average reached a record high of 32,966.75 before dipping slightly to close at 32,953.46. The S&P 500 and Nasdaq Composite indexes were also up.
Airlines have been especially strong. United Airlines (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) both hit 52-week highs yesterday. Between the vaccine and the decline in the number of new COVID-19 cases, people are starting to book flights and use up credits from flights booked last year. The return of tourist and business travel is good news for hotels, restaurants and other hospitality businesses.
Consumer stocks also showed strong improvements. Investor’s Business Daily highlights Nordstrom (NYSE: JWN) as one that hit a 52-week high. It shows good technical factors, and it is likely to benefit from people getting out of sweatpants and into party clothes. Other consumer stocks hitting 52-week highs yesterday were Gap Stores (NYSE: GPS) and Cheesecake Factory Inc. (NASDAQ: CAKE).
The continued progress against the coronavirus is good news all around, with the stock market just one of many beneficiaries. The stock market’s progress is one of many signs that maybe we are emerging from this. The pharmaceutical companies led the way, and the restaurants and retailers are following.
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