Day 6 of Dow's Climb
Seemingly on cruise control, the Dow Jones Industrial Average ended a sixth straight day of gains by closing at all-time highs for a fourth straight day. Today's buying was driven by February unemployment numbers showing that the unemployment rate declined to 7.7%. During this week, where investors bid shares higher on hopes the Fed would continue its stimulus program, the Dow posted 2.2% gains. Blue chips added 67 points, or about 0.5%, to close at 14,397 on Friday.
Walt Disney was today's top blue chip gainer, adding 1.9% today. The gain wasn't magical in the least; in fact, it was quite logical. Wall Street poured into shares after learning that the lovable trio of Han Solo, Luke Skywalker, and Princess Leia will all be portrayed by the original actors in the next Star Wars installment. Disney, which acquired Lucasfilm for $4 billion in October 2012, is shooting for a 2015 release date for the seventh film in the series.
After two straight days of crushing its blue chip counterparts, Bank of America fizzled to end the week, finishing 1.5% lower, at the bottom of the Dow. Still, with the kind of week B of A put together, as investors cheered the way the bank handled stress tests, shares still ended with 6.4% gains. Today's slip may have been partially caused by investors wanting to lock in gains.
Nine of the 10 major sectors ended Friday with gains, and none made off better than the consumer and cyclical sector, which added nearly 0.6% today. Premium mattress powerhouse Tempur-Pedic gave the sector a boost, jumping 5.8% today. Investors piled into the shares after learning that the planned acquisition of Sealy was approved by the FTC, a union that will strengthen competitive positioning significantly.
Of course, a rising sector does not a stock make. Phillip Morris , despite also being a consumer stock, slipped 0.8%. Less than 30% of all stocks traded today lost value ... so what did it do wrong? Where there's smoke there's fire, right? Usually that's right, but today, there wasn't much pushing it lower. That said, longer-term, the tightening grip of regulation, and the steady uptick of debt on big tobacco's balance sheets remain two major areas of concern for investors in the area.
Tobacco companies have been under siege in the U.S. for decades, as waves of litigation, regulation, and anti-smoking campaigns have given the industry a black eye. Yet, Philip Morris International focuses on overseas markets, where business prospects generally look brighter. Investors have been happy with its stock's performance, but is Philip Morris still a buy? Find out in The Motley Fool's premium research report on the company, which includes in-depth analysis of its opportunities and challenges ahead. To claim your report just click here now.
The article Day 6 of Dow's Climb originally appeared on Fool.com.Fool contributor John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Bank of America, Philip Morris International, Tempur-Pedic International, and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
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