Categories: U.S. Investing

Futures Shrug after Dow Jones Average Hits All-Time High

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Futures Shrug after Dow Jones Average Hits All-Time High (Bloomberg)

You’d never know from the scant movement of this morning’s U.S. stock-index futures that the Dow Jones Industrial Average (DJIA) closed above 16,000 for the first time yesterday to set an all-time high. But as equities remain little changed from the previous session, the futures markets may be acting with disdain towards this new high. Indeed, the S&P 500 Index futures contracts expiring in December have lost 0.1 percent through Thursday and are expected to end the week down for the first time since the week of Oct. 4. Could it be that investors are frightened of new highs, which were last seen just before the meltdown of 2008? Not according to hedge-fund manager David Tepper of Appaloosa Management LP, who bluntly stated, “I know there’s talk about bubbles, this is not one.” With that kind of surety, what could go wrong for investors?

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.