Bulletin
Investor Alert

London Markets Open in:

Deep Dive

Philip van Doorn

Oct. 29, 2019, 7:18 a.m. EDT

These S&P 500 stocks just hit record highs

The benchmark index also rose to an all-time high as investors anticipate more cash flowing from the Federal Reserve

By Philip van Doorn, MarketWatch


Bloomberg
Apple’s stock hit a new all-time high (adjusted for splits) on Oct. 28.

The benchmark S&P 500 Index hit a new intraday high Monday, as did 15 component stocks, while U.S. investors anticipated more economic stimulation from the Federal Reserve this week.

The list includes Apple (NAS:AAPL) , which rose to a record intraday high of $249.25 before closing at $246.58. Here’s a chart showing how Apple’s stock has performed over the past year:

The stock closed Dec. 31 at $157.74. It was up 56% year-to-date through Monday’s close. For 12 months it was up 15%.

The S&P 500 (S&P:SPX)  increased as much as 0.7% to post a new intraday high of 3,044.08 points, before setting its new all-time closing high of 3,039.42 for a 0.6% gain to end the trading session. The benchmark index had set its previous intraday and closing highs July 26.

The Dow Jones Industrial Average (DOW:DJIA)  added 0.5% Monday to close at 27,090.49, while the Nasdaq Composite Index (AMERICAN:COMP)  was up 1%.

Money spigot

The Federal Open Market Committee will hold its regular meeting Tuesday and Wednesday, followed by a policy announcement at 2 p.m. ET Wednesday. This follows a major change of direction for the Federal Reserve, which has started a program to purchase $60 billion a month in U.S. Treasury bills until the end of the year, after taking extraordinary action to shore up overnight liquidity, starting in September. Sven Henrich has called these actions “stealth intervention.”

Read: He warned the Fed might lose control over a $2 trillion interest-rate market — now he says it might happen again

The central bank lowered the federal funds target range by a quarter point July 31 and then by another quarter point Sept. 18 to the current range of 1.75% to 2%. Here’s why investors may see a third cut Wednesday.

New stimulus at home, negative interest rates in Europe and the European Central Bank’s decision to resume its own bond-buying to the tune of $20 billion euros ($22 billion) a month can all be seen as contributing factors to rising stock and bond prices in the U.S. Yield-seeking investors are turning away from Europe and Japan, where bonds with negative yields to maturity total more than $17 billion , according to Bloomberg.

Read: Mario Draghi saved the euro, but leaves ECB at a crossroads

Record highs

Among the S&P 500, 14 companies saw their stocks hit all-time highs (adjusted for splits and spin-offs) Monday, but the list includes 15 stocks, with both Alphabet (NAS:GOOG)   (NAS:GOOGL)  share classes represented. Here’s the list in alphabetical order:

Company Ticker All-time intraday high set Oct. 28 Closing price - Oct. 28 Price change - Oct. 28 Price change - 2019
Allegion PLC (NYS:ALLE) $116.55 $115.33 1.8% 44.7%
Alphabet Inc. Class A (NAS:GOOGL) $1,299.24 $1,288.98 2.0% 23.4%
Alphabet Inc. Class C (NAS:GOOG) $1,299.31 $1,290.00 2.0% 24.6%
Apple Inc. (NAS:AAPL) $249.25 $249.05 1.0% 57.9%
CDW Corp. (NAS:CDW) $127.01 $125.99 0.9% 55.4%
Charter Communications Inc. Class A (NAS:CHTR) $470.31 $467.09 1.1% 63.9%
Dover Corp. (NYS:DOV) $104.95 $104.21 0.5% 46.9%
First Republic Bank (NYS:FRC) $108.35 $107.41 -0.2% 23.6%
JPMorgan Chase & Co. (NYS:JPM) $127.21 $126.51 0.4% 29.6%
KLA Corp. (NAS:KLAC) $175.25 $174.78 2.8% 95.3%
Lam Research Corp. (NAS:LRCX) $282.00 $281.25 4.1% 106.5%
Microsoft Corp. (NAS:MSFT) $145.67 $144.19 2.5% 42.0%
Sherwin-Williams Co. (NYS:SHW) $581.22 $578.24 0.6% 47.0%
United Technologies Corp. $144.63 $143.04 0.1% 34.3%
Xylem Inc. (NYS:XYL) $85.67 $84.04 0.9% 26.0%

You can click the tickers for more about each company.

Don’t miss: Ratings firm’s ‘bottom 10’ junk bonds include J.C. Penney and U.S. Steel

<STRONG>Create an email alert for Philip van Doorn’s Deep Dive columns <INTERNAL-PAGE URL="/tools/alerts/newsColumn.asp">here</INTERNAL-PAGE>.</STRONG>

Link to MarketWatch's Slice.