What a 547-Point Rally in the Dow Feels Like

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If investors were worried last week that the sky was falling, they then had to factor in a disappointing Monday after a failed recovery effort. Tuesday was a different story, and suddenly investors felt better and were more upbeat. Maybe there is an exaggeration on daily emotions here, but the mood did seem to have changed back to being more positive on Tuesday. A 500-point rally in the Dow Jones industrial average will help calm even the most timid of investors. And to top it off, this was a rare instance where all 30 of the Dow stocks traded higher.

Tuesday’s big gains were driven after stronger than expected numbers in industrial production and by the news that there were a record 7.1 million job openings in America. And the overseas equity markets rallying earlier in the day helped to prevent more selling.

The unofficial closing price for the Dow was a gain of some 547 points, a move of almost 2.2% higher, at 25,798.42. Tuesday’s gain was also almost 800 points better than the lowest trading level last Friday. Now investors just have to keep in mind that the Dow is still well under the recent highs. Tuesday’s Dow movers with obvious rhyme and reason for their moves, some very positive and some less than very positive, are listed below.

Boeing Co. (NYSE: BA) was up big on Tuesday after forecasting strong demand for cargo planes for the next two decades. Its shares were up 2.4% at $367.60 going into the closing bell, in a 52-week high of $394.28.

Goldman Sachs Group Inc. (NYSE: GS) managed to gap up higher after earnings and remain higher all day, breaking its gap-up and break-down trading history after earnings. This was the worst stock of the Dow in 2018, so any good news is welcome here for the firm formerly called “Golden Slacks.” Its shares were trading up right at 3% at $221.73 right before Tuesday’s closing bell, and that is down from a 52-week high of $275.31.

Walmart Inc. (NYSE: WMT) was cheered on after the investing community decided that “lower guidance” was really isolated to slowing e-commerce sales and due to its $16 billion acquisition of Flipkart earlier this year. The core guidance remains strong, and Walmart shares were up 2.1% at $95.81 right before the closing bell. That is still well more than 10% under its 52-week high, and Walmart has a 2.2% yield.

McDonald’s Corp. (NYSE: MCD) was among the Dow’s laggards on Tuesday as its shares were barely up 0.2% at $163.98 in the final minutes of trading. The fast-food king has been deemed to be more defensive under the current environment, so investors were looking at better growth opportunities rather than Big Mac variations.

Exxon Mobil Corp. (NYSE: XOM) was also among the laggards as oil shares continue to face some headwinds after last week’s technical breakout was broken as fast as it was developing. Many investors appreciate the 4% dividend yield of Exxon, but they are still seeing very little evidence about why they should own it — even with crude oil still handily above the $70 mark. Exxon’s shares were last seen trading up just 0.37% at $81.12 right at the close of trading, in a 52-week range of $72.16 to $89.30.

Verizon Communications Inc. (NYSE: VZ) did not deserve very much of a round of applause as its stock was the only one of the Dow’s 30 components that was in negative territory almost the entire trading session. Verizon still managed to come all the way back by the end of the day, but its gain of 0.3% at $53.75 right ahead of the closing bell was good enough to keep it out of the red.