Bubble Risk With New Highs for Dow Industrials, Transports, S&P
NEW YORK (TheStreet) -- The major U.S. equity averages sustained a strong rally on Thursday as the European Central Bank eased monetary policy. The rally continues this morning on a solid jobs report for May.
The Nasdaq remains below its multiyear intraday high at 4,371.71 set on March 7, with the Russell 2000 (IWM) below its all-time intraday high at 1,212.82 set on March 4. The main reasons these indices are lagging are the elevated price-to-earnings ratios for Internet stocks on the Nasdaq and small caps in the Russell 2000.On Thursday, we profiled the 24 semiconductor stocks in "Letting the Chips (Stocks) Fall Where They May: A Mixed Bag." The SOX is the best performer year to date, with a gain of 15%. Overlooked by investors is the year-to-date performance of the Dow Utility Average
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