A broad stock market rally continued Tuesday, lifting the share price of more than a dozen local companies and companies with local ties well above their lows for the past year.
The Dow Jones Industrial Average climbed 49 points to close at 18,053.60, a day after closing above 18,000 for the first time since July. Meanwhile, the Standard & Poor’s 500 index closed at 2,100.80, topping the 2100 level for the first time since December.
The rally is a far cry from the steep downturn just two months ago that sent investors flocking and the market dropping by 10 percent in mid-February.
Both major stock indices closed higher for the fifth time in the past six trading sessions, and also closed well above their lows this year in January when investors fled the market over concerns of an oil price crash and economic slowdown in China.
Since then, signs of stabilization in China and rebounding oil prices have given the U.S. stock market a boost that could soon lift the Dow to its all-time high of 18,351 set in May 2015.
The positive momentum helped boost the share price of Dayton-based Teradata by 30 cents Tuesday to $25.09 — up more than 13 percent from its 52-week low of $21.98. Another Dayton-based company, REX American Resources Corp., posted a 20-cent gain to $55.59 — a 27 percent increase from its low for the year of $43.50.
The two companies were among a portfolio of 15 stocks of local interest, including Kroger Co., Procter & Gamble, and AK Steel, whose combined share prices at the close of trading Tuesday were up about 30 percent from their combined 52-week lows.
While the major indices continued to post gains, the tech-heavy Nasdaq struggled, closing down about 20 points Tuesday as shares of Netflix, IBM and other tech-industry stalwarts tumbled.
“I wouldn’t call this a bull market,” said Bill Wood, director of the financial services program at Wright State University. “If the entirety of the market was moving up with heavy (trading) volume, I’d feel better about things. But it’s not the entire market that’s moving. Some sectors are participating more so than others.”
Still, some analysts said the recent rally could be a sign that the worst of the market volatility is over.
But Wood was quick to warn against investing in stocks when prices are peaking, or chasing the rally, at a time when stock markets are still prone to massive swings and quick shifts.
“There is an axiom in investing that says you make money with your brain, not your heart. And your heart is what tells you to chase the rally,” he said. “As long as you continue to invest in up markets and down markets; that discipline to invest in good days and bad days is what makes a successful investor long-term.”
The start of the corporate earnings season, which began Tuesday, could give investors a strong indication of were stock prices are headed.
“The market is focused on where we are going to be three months from now, five months from now,” said Quincy Krosby, market strategist at Prudential Financial. “It’s all about the guidance, and it’s also all about what companies are doing to beat on the bottom line.”
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