It was another huge day for the stock market.
First the scoreboard:
Dow: 15,346, +112.0 pts, +0.7%
S&P 500: 1,666, +16.4 pts, +0.9%
NASDAQ: 3,495, +30.0 pts, +0.8%
And now the top stories:
- Stocks surged to another all-time high today. Some are worried things are getting too hot. But most agree that markets are nowhere near the irrational exuberance days of 2000 and 2007.
- “Anyone can find similarities in the stock market action of different years,” writes Reformed Broker Josh Brown. “It’s not complicated – stocks can really only do some combination of three things, up, down or sideways. But this type of comparative analysis is, as always, a function of what details you choose to leave out. I can compare my house to the Taj Mahal if I choose to leave out quantitative factors like square footage or qualitative factors like its location or historical significance.”
- Brown and other market experts will first note that earnings are much higher today than they were during previous peaks, meaning that valuations as measured by price-to-earnings (PE) are relatively reasonable.
- JP Morgan’s Tom Lee cranked up his year-end target for the S&P 500 to 1,715 based on a 14.7 PE on his 2014 EPS forecast of $117. “This has been a better bull market than we expected, particularly in 2013. But this is conforming to history—the average gain in the fifth year of a bull market is 19% (implies 1,719).”
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