Consumers play a vital role in the U.S. economy. So today’s news on consumer sentiment, which signaled levels of optimism not seen in nearly six years, provided more fuel for the long series of new highs for the stock market. Add to that a better-than-expected gain in the Leading Economic Index, which is designed to predict future economic activity, and it’s easy to understand why the Dow Jones Industrial Average (INDEXDJX:.DJI) are up sharply, rising about 54 points, or 0.35%, as of 10:50 a.m. EDT. The broader market gained even more on a percentage basis, with the S&P 500 (INDEXSP:.INX) up 0.48% and on track for a new record of its own.
Leading the Dow Jones Industrial Average (INDEXDJX:.DJI) higher is The Boeing Company (NYSE:BA), which is up more than 2%. As the company moves beyond the extensive problems with its 787 Dreamliner aircraft, it recently received its first order for its 737 MAX 7 model, with Southwest Airlines Co. (NYSE:LUV) converting some of its orders for other 737 models to the MAX 7. Southwest Airlines Co. (NYSE:LUV) has traditionally operated only 737 aircraft, saving money by avoiding the need for pilots and maintenance crews trained on many different models. But The Boeing Company (NYSE:BA) can expect plenty more orders for the MAX 7 and other updated 737 variations in the years to come.
Sharing in the aerospace limelight is United Technologies Corporation (NYSE:UTX), up 1.9% this morning. The surge in commercial-aircraft orders was likely responsible for United Technologies Corporation (NYSE:UTX)’s decision to focus more heavily on the industry, with its purchase of Goodrich cementing its place as a major supplier of components and systems for various types of aircraft. Moreover, by relying less on military aircraft programs for its aerospace profit, United Technologies Corporation (NYSE:UTX) is in a better position to handle ongoing budget pressures from the Department of Defense and other governments around the world.
Finally, outside the Dow Jones Industrial Average (INDEXDJX:.DJI), Aruba Networks, Inc. (NASDAQ:ARUN) has plunged more than 27% after announcing poor earnings and giving disappointing guidance for the current quarter. Given the impressive results that Dow Jones Industrial Average (INDEXDJX:.DJI) component Cisco Systems, Inc. (NASDAQ:CSCO) announced earlier this week, Aruba Networks, Inc. (NASDAQ:ARUN)’s news only highlights the extreme competitive pressures that the network industry is experiencing right now.
The article Can Consumers Sustain the Dow’s Record Highs? originally appeared on Fool.com is written by Dan Caplinger.
Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Cisco Systems and Southwest Airlines.
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