Dow industrial average test its 200 day moving average
The Dow industrial average is leading the way today with a 540 point rise or 1.7%. The current prices trading at 32573.46. The high price reached 32661.74.
Looking at the daily chart, the high price was able to extend above its 200 day moving average at 32642 area. The last time the price traded above its 200 day moving average was between August 15 and August 19. There were 3 days where the price closed above that moving average line before breaking back below and trending down to the low for the year at 28660.94. Since then the price has moved up close to 14%.
Biggest gainers in the Dow 30
Leading the run up this month is Caterpillar which is up 31.1%. Chevron is up 23.38% and Amgen is up 19.88%. For the year to date, Chevron is up 52.2%, Merck and Company is up 30.44%, Amgen is up 21.71% and Travelers is up 15.23%. The big gainers this month Caterpillar is up 5.2%.
Meanwhile, crude oil prices are up 18.17% from the end of year levels. I’m sure Chevron have done a stellar job of cutting their costs to account for the surge.
Caterpillar is getting a windfall from the infrastructure spending, including the chips bill which has chip makers building multiple $20 billion infrastructure facilities. The costs of such building will likely skyrocket as a result leading to higher prices. .
We are still in a cost-push inflation environment. The rise in prices from Russian invasion is one thing, but it is not the only thing. It is just an excuse to jump on the price hike surge (or so it seems) that trumps those rises from the impact of the invasion..