Apr

30

It is possible if the stocks making new highs have made big gains. To see why, imagine an equally-weighted index with just two stocks, X and Y. Both start at 100, with the index also at 100. Then both rise to 135, as does the index. Then a nasty correction occurs, knocking both their prices and the index back to 100. Then X's sector falls out of favor, and X struggles to rally back to 108. During the same time, Y's price rises to 200. The result is that the index reaches a new high of 154, even though one of its stocks is 20% off its high.

For the record, 15 of the 30 Dow stocks are up at least 10% over the past year and are within 5% of their 52-week highs

One wonders how 22 stocks of the Dow can be well below their highs, 8 at new highs, and yet the Dow Index is at an all time high. How is this possible?

52-week 52-week       % from  52-week
   Year ago   High     Low   Today   high   change
HON    43.13   55.04   35.53   54.89  -0.3%   27.3%
KO     42.05   52.23   41.61   52.06  -0.3%   23.8%
IBM    83.88  101.70   72.73  101.17  -0.5%   20.6%
XOM    62.42   80.86   56.64   80.36  -0.6%   28.7%
JPM    43.95   53.00   39.33   52.55  -0.8%   19.6%
AXP    53.70   62.74   49.73   62.14  -1.0%   15.7%
MRK    34.60   52.63   32.75   51.86  -1.5%   49.9%
MCD    34.62   49.70   31.73   48.95  -1.5%   41.4%
BA     84.10   95.58   72.13   94.02  -1.6%   11.8%

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