STORY:

COMMENTS:

KIM FORREST, SENIOR EQUITY RESEARCH ANALYST AT FORT PITT CAPITAL GROUP IN PITTSBURGH

"22,000 is just another number to me. I am impressed though that the market keeps going higher and that the earnings seems to be driving it. And it’s not just in the U.S.. Economies of the world keep getting better. Of course we will have a correction, I just don’t know when that will happen. At some point a group of investors will say: 'I have had all these great gains I really should take some, why not today?' and they do it all together. As long as the information that comes out is not necessarily resetting what we believe about the economy at large, it should be a blip.

"Markets are already factoring that Trump’s policies are going to be pushed out into 2018 and 2019. Everyone assumes that it’s not going to happen shortly.

"I think a weaker dollar is helping a lot. Most of the companies reporting in the S&P 500 have significant holdings oversees. We are not seeing the drag from Forex."

BRIAN JACOBSEN, SENIOR INVESTMENT STRATEGIST, WELLS FARGO FUNDS MANAGEMENT, MENOMONEE FALLS, WISCONSIN

“Round numbers are a focal point, they are kind of arbitrary but people seem to focus and it can affect sentiment. I don't want to completely dismiss the importance of round numbers because, especially in the short term, sentiment and psychology are the primary drivers of the market movements. Over longer periods of time it’s more fundamentals, the economic backdrop, what becomes important. If there’s going to be something that gives the market more fuel it has to come from fundamentals. Excitement about a round number can only carry it so far.”

“Hitting 22,000 or 23,000 isn't going to mark the end of the bull market. That's likely going to happen when the fundamentals start to deteriorate and it strikes fear in people’s hearts. Historically, market corrections and bear markets have been driven by geopolitical issues, growth fears of inflation fears. And you go from a correction to a bear market when those fears become reality. I just don’t see the economy going into a recession. If anything I think people are going to start getting a little excited about economic growth accelerating.”

ANDRE BAKHOS, MANAGING DIRECTOR, JANLYNN CAPITAL LLC, BERNARDSVILLE, NEW JERSEY

“I look at milestones as being psychological targets. Earnings have been robust and Wall Street is getting a response from Corporate America. The legislative response by Congress will decide the sustainability of the rally. The market has been resilient in its behaviour and that comes despite the fact that we have a failed healthcare repeal. It's almost like water off a duck's back. But, it would like to get more to sink its teeth into, and a big legislative victory will go far in adding more to investor confidence.”

“Company profits have been positive enough to withstand a continued flow of disappointment (from the White House). There will be a tipping point some time, but we're not anywhere near that.”

MIKE LOEWENGART, VP, INVESTMENT STRATEGY AT E*TRADE

"Sure, the Dow hitting 22k is symbolically important, but the real story is never an arbitrary number—it’s the underlying strength that is pushing markets this high. And while today the Dow is driven by the Apple of its eye, this is just one of many stories of strength, including a strong showing from Dow stalwarts like Boeing and Visa. But as we pass yet another historic milestone, folks paying attention at home are viewing the future with cautious optimism, hoping positive news on the economy—like wage growth and low unemployment—can keep pace with strong corporate growth."

MARK LUSCHINI, CHIEF INVESTMENT STRATEGIST AT JANNEY MONTGOMERY SCOTT IN PHILADELPHIA

"The price levels don't change my view about anything one way or another. It is more about valuations and underlying fundamental considerations.

"Obviously it's a big fat number. Typically at those big round numbers the market seems to hesitate ... I'm looking at this as a situation where the underlying evidence as to why the stock market has responded as well as it has so far this year is the fertile climate for corporate profits which is likely to remain so. Therefore the market will see higher levels than this tentative breach of 22,000.

"That said, the market isn't without issues as it relates to valuations which are full if not somewhat expensive. As well you can see some internal divergences such as the transportation stocks not acting so well.

"The market gain has been built on a narrow group of issues. That typically is not indicative of great health. That doesn't mean we have to see a sizeable pullback in stock prices but I would not be shocked ... if we saw a pullback, nothing life threatening, in equity prices, to digest some of the gains that have been had here."

NAEEM ASLAM, CHIEF MARKET ANALYST, THINK MARKETS, LONDON

"Dow hitting the 22,000 is a remarkable thing for investors. It just shows how strong the momentum is in the market. Breaking the 22,000 level encourages investors to participate in markets, but at the same time, this could also be a trap if the momentum does not follow."

RANDY FREDERICK, VICE PRESIDENT OF TRADING AND DERIVATIVES, CHARLES SCHWAB, AUSTIN, TEXAS

"The Dow is a very narrow gauge of the market. It only includes thirty stocks and they are industrial oriented. The S&P 500 is a much better, broader gauge. And obviously, because of the way it is weighted, just a couple of stocks, for example Apple Inc, can have a huge impact on it. The Dow's run has been pretty impressive but compare it with the S&P 500, which gives a much better, broader picture of what's really going on in the market place.

"Both of the indexes are either at or very close to record highs. The S&P 500 pulled back from a record high last week and hasn't gotten there again. The Dow has just continued to go up. But each time it's been driven by earnings and a high priced stock that has had a pretty outsized impact on the index.

"When you compare the two indexes it is pretty clear that the Dow has significantly departed from where the S&P has been headed lately."

NEIL WILSON, SENIOR MARKET ANALYST, ETX CAPITAL, LONDON, WROTE IN A RESEARCH NOTE:

"The Dow Jones industrial average notched another record high and another major milestone as trading opened on Wall Street today. Thanks to a major pop for Apple shares following the blockbuster quarterly earnings, the Dow rallied past the 22,000 handle for the time ever. It’s not the fastest 1,000 point run – it’s taken a lot longer than the 24 sessions it took to get from 20k to 21k – but it’s indicative of a bull market speeding to a top. The Dow is now up more than 11 percent this year, while the tech-heavy Nasdaq is up more than 18 percent. But August is usually not a great month for stocks – up 5 times in the last 20 - so there is caution about how long this can be sustained beyond earnings season euphoria."

ART HOGAN, CHIEF MARKET STRATEGIST AT WUNDERLICH EQUITY CAPITAL MARKETS IN NEW YORK

"I don't think there is a Trump connection to the Dow hitting 22,000. Investors continue to believe the economy and earnings are riding along well and adding to the positive sentiment. As long as we have slow and steady economic growth, improving earnings and low interest rates, then the multiples are rational. I think we will get fiscal policy in '18 and that's probably the time when we are going to need it."

STEVEN CHIAVARONE, PORTFOLIO MANAGER, FEDERATED INVESTORS IN NEW YORK

“I think it’s good old-fashioned earnings growth. Q1 was the best earnings quarter that we had in 5 years. It looks like we will be on track for the second best quarter for earnings growth in 5 years. Earnings growth allows the market to be patient about Washington. It allows the market to be patient about fiscal reform. And as you look out, it looks (like) earnings growth will be robust in Q3 as well, with at least a double digit increase. At the same time, global growth has been pretty good, economic data has been okay, and the Fed appears to be on about as dovish a hiking cycle as we could imagine. That doesn’t mean that there won’t be an air pocket in August or September, with potential ugliness about whether Washington pivots to tax reform or stays focussed on healthcare. There will also be conversations about who Janet Yellen’s potential successor will be and that could cause some volatility. We would be buyers on any weakness.”

(Americas Economics and Markets Desk; +1-646 223-6300)