Basically a two-stock show for the Dow Industrials today, with a couple perennials — Boeing and Caterpillar — supplying 75% of the average’s nearly 51-point gain. The outsized effect from BA and CAT drove the DJIA to a 0.4% rise while the S&P 500 was only up 0.1%.
Got to hand it to those Boeing investors — they’re a very forgiving bunch, no doubt about it. BA shares tore 3.4% higher, climbing $2.40 to $72.47 after the company said it now expects to deliver its first 787 Dreamliner in the third quarter, which is more than three years late. Three years late, citizens. Cause for celebration. And even that plan is no guarantee.
It’s the seventh official delay, and pushes back delivery that had been expected next month, before an electrical fire during a November test flight scuttled those notions.
But here’s the good news, investors — the stock is well back above its levels just prior to the fire, so it’s as if it never happened. And that fresh, six-month delay in deliveries? Eh, all priced in. “We’re just happy it wasn’t longer,” relieved investors are said to be thinking.
Apparently they have no qualms about giving Boeing the benefit of the doubt, which is pretty amazing after seven delays and more than three years late, as of today. Delivery in 3Q? Don’t hold your breath.
Meanwhile, CAT dashed 2.8% higher, rising $2.66 to $96.23 and another fresh all-time high. Reason? Who knows. Does it really need a reason? We suppose you could chalk it up to weak dollar, strong euro, roaring commodities prices and increased bets for better global growth. Whatever. CAT has the smallest float in the DJIA, so when the momentum gets behind this creature, it really scoots, giving a serious goose to the DJIA. Today was one of those days.
And we’re not ignoring the Nasdaq Comp, by the way, which today floated up to its highest close since November 6, 2007. It now stands a mere 94 points away from its October 2007 multi-year high, and once it passes that, it’s hello to levels not seen since early 2001. Yes, 2001.
Frothy, folks. Feels very frothy.