Symbolically significant number 5,000. It was a record day, by the way, for the Dow Jones Industrial average, up nearly 156 points. It finished at 18,288. The nasdaq closed 44 points higher. It was 5,008. The s p 500 also at a new alltime closing high up 12 points to finish the day at 2,117. Berttha coombs joins us with what drove the index to this level. Hi, bertha. Its been an amazing ride tyler. 15 years ago, you had stocks that traded on the nasdaq with valuations that were sometimes 100 times or more what their earnings were, if they had profits at all. Very different index right now. If you take a look at a number of these stocks some of the high flyers they now have valuations that are much closer to the closing market. The nasdaq 100, even if you have stocks like amazon and tesla, you still have other stocks that brought the nasdaq 100 pe down to 19. That compares to the s p at 17. And really the biggest indicator is apple. Apple, despite being the Largest Company emp by market
Or maybe blithe. Its starting to get too sane win about every move that a ceo makes. The dow surged today and the s p gamed, nasdaq up 0. 9 . Taking the comp through the 5,000 level. Some of the new found love comes from a natural rotation related to the fact that the economy irrefutably is getting better. We are seeing huge almost indiscriminate moves among all the big capitalization stocks as money pours into the s p 500. We had definite green shoots in europe. And we are seeing copper in the baltic freight index stabilize and start to climb. You Better Believe this xhation can drive it up im talk about disney, united technologies, boeing. These gigantic moves have no specific news. Not at all. They just reflect optimism about the future. This weekend, Warren Buffett praised the big stocks. Could this rally be a coincidence . And buffett says if you believe in American Progress you have to own long term Great American businesses. If you dont, go buy bonds. Boo the big monies is agree
Near record 10 Million Barrels a day. Of the 50 or so oil related stocks that i follow only about ten, 20 are up over the past month. All down more than 20 . Goodrich petroleum down more than 40 . One group that has been completely i think ignored, the offshore drillers. Theyre down worse, when youve got the hercules offshore. You cant even mention it now. All difficult. Ensco, a very modern rig system. The number of rigs coming on is shocking. People dont understand its about supply not necessarily demand. The tenyear treasury yield at 1. 92 or so. Again, down from our recent highs. But lets not forget jim. Yes, were down in the near term, but were actually higher than we were by about 30 basis points for our lows so far in the year. Excellent. Also in our road map this morning, shares of Gilead Sciences are down. Could be the big stock story of the day. The Company Warning of complications related to its hepatitis c drug. Chuck schumer calling for an investigation into Lumber Liquida
We can draw connections to the dollar and bonds and soft macro data. Whatever you want to explain todays decline. Dow sinking 195 points, s p down 1. 01 . Nasdaq plunging 1. 64. I know i have heard all those consents bandied as the scourge of stock owners who got laid to waste today, pulverized. But i think this market is all about eve. Yeah. The original eve. Who was tricked by the serpent into eating the forbidden apple from the trees. And the whole investor class has been paying the price. The serpent in this case is that apple quarter. The one that seems so tempting to eager investors that they couldnt resist buying the stock ahead of, during and right after earnings. Reaching to the skies for it. Even as i begged you not to. Now the investor gods are making every stock pay and the pain wont end. The house of pain. Until these feckless apple traders given up the ghost. Sell sell sell. And then the stock bottoms. Hey, look i was going to go with the isaac newton thing. What goes up
Double digit losses. At this point, up until now, you really didnt see much of an reaction that people were somewhat complacent. We arent seeing the reaction we saw in august of 11 but getting closer. Well talk about investing in this market, my exclusive interview with Julian Robertson. Well get his opinion on how to play this market, against specific names he says will make money right now. Including ones you may never have heard of. Wait until you hear what he has to say about apple and the late steve jobs. I have to say, bill, i was taken aback by his comments on apple and why he would not be putting money in apple today. I was shocked when i heard about it myself. I just ran into him recently. Hes 81 years old. He is he looks terrific. Stronger than ever. Very vigorous. Very much focused on this market, investing. Absolutely. Glitchgate continues for the new health care law. You know its bad when even saturday night live makes fun of the website problems. Well show you that. And a