06.05.202110:45 Forex Analysis & Reviews: Dow Jones sets its 22nd record this year

Yesterday, the Dow Jones Industrial Average jumped by 0.3%, or 97.31 points, to 34,230.34, hitting its 22nd record high this year. The index showed similar performance for the whole 2019.

Meanwhile, the S&P 500 has shown even greater results for the past 4 months. It has reached its 25th all-time high since the beginning of the year, gaining 11%. Yesterday, the index rose by 0.1%, or 2.93 points, settling at 4167.59.

The rapid economic recovery after the COVID-19 pandemic is believed to have been driving the US stock market since the start of 2021. Its main indicators have returned to slightly below pre-pandemic levels, having a positive impact on corporate earnings. The companies keep reporting positive results, thereby boosting the key indices.

Yesterday, strong earnings reports again drove the Dow Jones and the S&P 500. Over 75% of companies whose shares are included in the S&P 500, reported growth in the first quarter of this year. According to FactSet, their results surpasses consensus earnings expectations by 80% and earnings exceeded expectations by 23%.

Among the Dow constituents, Dow Inc shares revealed the most positive dynamics on Wednesday, climbing by 2.81% to 68.08.

At the same time, Chevron shares added 2.67% yesterday, settling slightly above 108. Merck & Company shares gained 2.25% from the previous session, closing at 77.70.

As for the S&P 500 components, the shares of the leading American energy company, Devon Energy Corporation, jumped by 7.55% to 25.22.

Shares of Under Armour, the sports equipment company, reached their 52-weeks high yesterday. The assets of Under Armour Inc C soared by 7% to 21.13, while Under Armour Inc A securities spiked by 6.95% to 22.54.

Wednesday turned out to be a successful trading day for Big 5 Sporting Goods (the NASDAQ company), whose shares grew by 31% to the record high of 25.02.

Medical companies, whose shares are also included in the NASDAQ index, also soared on Wednesday. Nemaura Medical shares spiked by more than 134% to 11.02. Chiasma gained almost 40%, closing at 3.97.

Meanwhile, the NASDAQ Composite, one of the leading stock indices, sagged by 0.4%, or 51,08 points, and closed at 13,582.42.

Cocrystal Pharma, the biotech company, lost over 31%, closing at 1.4600 on Wednesday. Shares of Intrusion, Sequential Brands Group, and Verisk Analytics also tumbled.

As a result of trading on May 5 on the NASDAQ stock exchange, securities of more than 1,900 issuers plunged, while assets of 1,384 companies closed higher. As for the New York Stock Exchange, the number of companies whose shares advanced was higher than those incurring losses: 1712 versus 1488.

Strong corporate earnings may not be the only reason for the bull US stock market. It could also be yesterday's remark of the US Treasury Secretary. On Wednesday, Janet Yellen changed her rhetoric on an increase in interest rates.