DOW INDUSTRIALS EXCEED JUNE HIGH -- CATERPILLAR AND NIKE BREAK OUT -- AIRLINES LEAD TRANSPORTS HIGHER -- FEDEX HAS ANOTHER BIG DAY
DOW EXCEEDS JUNE HIGH... The Dow Industrials continue to gain ground on the rest of the stock market. And is the strongest of the three major stock indexes today. Chart 1 shows the Dow Industrials trading above their June intra-day peak at 27,600. The Dow is the last of the major stock indexes to do that. Two of its biggest gainers are Caterpillar and Nike which are achieving bullish breakouts of their own.
CATERPILLAR AND NIKE BREAK OUT...Chart 2 shows Caterpillar (CAT) rising to the highest level in seven months. Chart 3 shows Nike (NKE) breaking through its 2020 highs to establish a new record. It's encouraging to see money flowing into more cyclical type value stocks while the tech-driven Nasdaq market undergoes some profit-taking. That includes smaller stocks. It's also encouraging to see the Dow Industrials and Transports rising together.
AIRLINES AND FEDEX LEAD TRANSPORTS HIGHER...The Dow Transports broke through their June high last week and are gaining upside momentum. Chart 4 shows the Dow Transports gaining 2.8% today to lead the rest of the market higher. It's good to see the two Dow Averages back in sync on the upside. Airlines stocks are leading the transports higher for a change. FedEx, however, is the day's standout performer. Chart 5 shows FDX hitting 200 for the first time since 2018. My Friday message showed the stock in the early stages of a new uptrend. Its rising relative strength line in the upper box also shows it starting to show new market leadership.
