What's Behind the Dow's All-Time High This Morning
The moment financial media companies have been waiting for finally came this morning, as the Dow Jones Industrials set a new intraday record this morning. As of 10:45 a.m. EST, the Dow is up 139 points to 14,267, easily eclipsing the former high level of 14,198 and on pace to leave the former closing record far behind -- if it can hold its gains. Interestingly, the move led to a renewed focus on long-term perspective, which has become a rarity in market commentary but which makes sense, given the inevitable comparisons to the previous record set in late 2007.
Within the Dow, gains were broad-based, with 29 of the 30 Dow components higher on the day. Hewlett-Packard is the morning's biggest gainer, rising more than 2% on news that institutional-investor services company ISS had recommended that shareholders vote against three directors seeking to keep their positions on HP's board, including chairman Ray Lane. The stock has rebounded lately, but questions about the company's future strategy still linger and call into question whether the recent rally can last.
Elsewhere in the market, Genworth Financial has risen 6.8% on a good day for specialty insurers with exposure to the mortgage insurance business. Good news on the housing front has improved the financial situation at Genworth and its peers markedly, and if the economy continues to strengthen, then rising home values could make Genworth's business a lot less risky going forward.
Finally, construction-related plays Terex and Manitowoc have climbed 6.1% and 4.8%, respectively. After hitting new yearly highs last month, the makers of heavy equipment for the construction industry had fallen back on fears that the economic expansion might end. But optimism in the markets tends to beget optimism in business activity, and investors clearly think a cyclical upturn could boost both companies a whole lot further in the months and years to come.
Can HP keep up its comeback?
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The article What's Behind the Dow's All-Time High This Morning originally appeared on Fool.com.
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