The Dow and S&P 500 Eye Fresh All-Time Highs at Midday: Is the Rally Back On?

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) continues to nudge higher today, and shortly before noon its 0.4% gain put the index within striking distance of the all-time closing high of 16,576.66 set on the last day of 2013. The S&P 500 (SNPINDEX: ^GSPC  ) was also up 0.4% at lunchtime, hitting a record high of 1,884.60; it remains to be seen whether this new record will hold up for the rest of the day, as both indexes have been slipping from an early peak. The S&P's last record was 1,878.04 points, set in early March.

The big news today came from the Institute for Supply Management's factory-activity index, which continues to show expansion (a reading over 50) with a 53.7 reading for March, above February's result of 53.2. Markit's Manufacturing Purchasing Managers Index fell to 55.5 in March from 57.1 in February, but that's still solidly in expansionary territory. Automakers Ford and Toyota both reported good monthly sales growth for March, with respective upticks of 3.4% and 5%.

The Dow's components are wavering between strength and weakness heading into the afternoon, with several trading near breakeven and 13 of the 30 components in the red. The Dow's early leader is Cisco Systems  (NASDAQ: CSCO  ) , which was trading up 1.9% at lunchtime, while Disney  (NYSE: DIS  )  was hot on Cisco's heels with a 1.5% gain. Neither stock is trading on any real news, although Cisco Vice President of Corporate Technology Maciej Kranz  promoted the company's Internet of Things initiatives earlier this morning at a tech conference in Boston. Disney's Frozen recently became the top-grossing animated film of all time, and the entertainment conglomerate is also in the news for its acquisition of YouTube-native Maker Studios, which could cost nearly $1 billion if the deal's earn-out targets are reached. One of those news bites is noteworthy, but the other appears merely buzzworthy at first glance.

Source: Wikimedia Commons.

Approximately 300 of the S&P's 500 stocks were in the green today, and none was enjoying a bigger pop than robotic-surgery pioneer Intuitive Surgical  (NASDAQ: ISRG  ) . Intuitive's 8.2% gain is nearly double that of the second-best-performing S&P 500 component, and this pop does have good news behind it -- the FDA approved a new da Vinci surgical robot that is more advanced than earlier versions. Intuitive CEO Gary Guthart  was cited in the company's press release as saying, "The da Vinci Xi System's new overhead architecture means that multi-quadrant surgery can be performed without repositioning the system, an innovation long sought by surgeons who perform complex procedures."

This new da Vinci could result in "at least 575" new system sales, according to ISI Group analyst Vijay Kumar. That's no chump change for Intuitive, which has an installed base of roughly 2,585 da Vinci systems at costs ranging from $1 million to $2.3 million apiece, not including service agreements, accessories, and instrument costs.

Invest in the next wave of health care innovation
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And the technology  behind is poised to set off one of the most remarkable health care revolutions in decades. The Motley Fool's exclusive research presentation dives into this technology's true potential, and it's ability to make life-changing medical solutions never thought possible.  To learn how you can invest in this unbelievable new technology, click here now to see our free report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2898612, ~/Articles/ArticleHandler.aspx, 8/21/2014 4:49:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement