In a remarkable turn of events, the Dow Jones Industrial Average closed above 48,000 for the first time, settling at an impressive 48,255. This milestone comes as the Dow has surged nearly 3% in just three days, with notable contributions from major companies like Goldman Sachs, which saw an increase of 6.7%, Merck up 6%, and Disney climbing by 5.3%.
As market watchers await Disney’s earnings report scheduled for Thursday morning on “Squawk Box,” the company’s shares have shown resilience, increasing by 2.6% since its last report. Having risen 15.5% in the past year, Disney’s stock performance positions it 21st out of the Dow’s 30 companies based on performance this year. However, it still remains nearly 7% below its 52-week high reached on June 30.
In parallel, the airline industry remains in the spotlight as the House prepares to vote on a bill aimed at reopening the government. In the 42 days since the government shutdown, the performance of airlines has varied widely. American Airlines has stood out with a 20% rise, while United Airlines and Delta Airlines have shown increases of 3.6% and 6.6%, respectively. Conversely, JetBlue has faced a significant downturn, falling 11%, while Alaska Air has dropped 13% since October 1.
Shifting focus to the luxury sector, JPMorgan is hosting a conference in Paris to discuss luxury stocks, drawing attention to brands like Hermes, which is currently 25% off its Valentine’s Day high despite a recent 5% increase in three days. Richemont, known for brands like Cartier, recently hit a high on Tuesday, boasting a 6.6% increase over the same three-day span and an impressive 27% gain over three months. Meanwhile, Kering, the owner of Gucci and Saint Laurent, is just 11% off its October high, having risen 7% in the past five days. LVMH shares are similarly positioned, up 7% in three days and just 5% short of their January high. Burberry and Prada stocks have also seen increases of 9% each in three days, though they remain 10% and 31% off their respective highs.
With significant events on the horizon, including the anticipated earnings from Disney and Burberry, market participants are keenly tuning in as the financial landscape remains dynamic.
