It was a great day for the market. The Dow Jones Industrial Average
If we have to credit just one thing ...
According to water-cooler talk on the Web, we can thank:
- A surge in U.S. housing starts (along with permits and homebuilder sentiment).
- German business confidence that's increasing more than expected.
- Spanish bonds that are selling plentifully and more cheaply than last month.
Of the three, No. 1 is a bit dubious, because for housing prices to recover, the supply-and-demand dynamics must equalize. More starts mean more inventory added, which has a dampening effect on prices.
A more granular view
For the individual stock investors among us, we can also look at the big moves among the stocks that make up the Dow.
If you haven't noticed, every single one of the 30 Dow companies was up today!
Here are the five biggest winners:
Today's Stock Price Change
Source: S&P Capital IQ.
Given the housing and European goodness today, it's not surprising to see these types of companies leading the Dow winners. Construction equipment, banking, a home-focused retailer, and commodities make a lot of sense. DuPont may have you scratching your head, but its chemicals are used all over the economy. And hey, on this day, even the worst Dow stock is up 1.3%!
As you digest the day's news, remember that we're just looking at daily stock-price movements here. It's fun to check in on the news, but at The Motley Fool, we recommend investing for the long term. These daily price movements are just small blips in the bigger picture.
For a stock that The Motley Fool's chief investment officer believes has a long, prosperous future ahead of it, check out our brand-new free report: "The Motley Fool's Top Stock for 2012." I invite you to take a copy, free for a limited time. Access the report to find out the name of this legendary company.
Anand Chokkavelu owns shares of JPMorgan Chase. Motley Fool newsletter services have recommended buying shares of Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.