The Dow Jones Industrial Average (DJIA) closed at a record high for the fifth straight trading day, ending up by 50 points to a record high of 14,447 points. The S&P 500 rose 5 points to 1,556 points or 0.31% and only 0.45% away from its all-time high.
The Nasdaq rose 8 points or 0.24% to 3,252 points and the advance on all fronts comes after stocks ended one of the best weeks of the year last Friday, when the Dow closed at a record high for the fourth straight day.
Stocks have shrugged off concerns about sequestration budget cuts and were supported by recent better-than-expected economic data and signs the Federal Reserve will keep its stimulus policies going.
There is now optimism that Congress will pass a budget before current legislation expires on March 27.
“It looks like we might actually get a budget this year,” said Charlie Smith, chief investment officer at Fort Pitt Capital Group. “The political scene is pretty well settled in the U.S.“
John Stoltzfus, chief market strategist at Oppenheimer, notes that what goes up will likely soon adjust down;
“At some point, likely sooner than later, a piece of negative news or some data point will trip the bull up,” Stoltzfus wrote in his weekly note to his clients.
Retail sales data are due on Wednesday and could determine the direction of the market. February sales are expected to have risen 0.5%, according to economists polled by Briefing.com. However, higher gas prices, static incomes and higher payroll taxes are equally likely to put a damper on stocks.
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