Commenting on the market movements, CNBC reporter Bob Pisani gave a brief on the latest trends in the market and the sectors which are on a high in the ‘Squawk on the Street’ program.
Pisani highlighted the fact the Dow Jones is nearing 17,000 and even gains of 1000 points aren’t that high as they used to be in the past as the Dow has already crossed 16000 in February this year. He stated that the movement of the market leaders that are continuously rotating from the top slots, one after the other, is what keeping the continuing upward climb of the Dow.
“Every time you get a move, like healthcare moves up, becomes a market leader, then it falls back, which is its done recently, and technology moves up, becomes leader and then falls back. This month, energy and financial stocks have been very strong, and once again they are taking up the slack, as other names that were strong like tech earlier or even consumer staples fall back,” Pisani said.
Adding to his observation, Pisani said that Corinthian Colleges Inc. (NASDAQ:COCO) reached a Memorandum of Understanding with the Department of Education on a transition plan and has since gained 25%. Meanwhile, FMC Corp (NYSE:FMC) has fallen by 3.25% on the back on its guidance, which was below the expectations of analysts.
He said that there are a lot of questions being asked about the alternatives to high-yielding stocks, and according to him there isn’t any alternative. But he added that there are some stocks that can give yield to the investor that is higher than the S&P 500 and also at the same time these stocks have a growth potential.
Commenting on Nordic American Offshore Ltd. (NYSE:NAO), Pisani said that the yield on the stock is 11%, and that’s one of the reasons why most people are interested in such energy sector stocks. Pisani also highlighted the fact that there will be a kind of IPO tsunami in the next week with 18 companies lined up for public offerings.