The details of the February jobs report were also favorable. Hours worked and hourly wages both rose slightly. Fueled by this solid report, stocks continued higher, as the Dow closed at a record high for the fourth day in a row.
-Kate Warne, cheif investment strategist, Edward Jones
Why Are Stocks Rising?
Short term, emotions sway the stock market, and currently, many investors are feeling upbeat. But more importantly, the fundamentals that drive long-term stock prices have also improved.
- Stock prices are higher in response to that good news as well as less policy uncertainty.
- We believe the economy seems to be shifting into higher gear.
- Corporate profits have been strong, up 7.2% over the past year.
- Despite the concerns about the possible impacts of the payroll tax increase, rising gasoline prices and looming government spending cuts, consumers have continued to spend.
- The sequester spending cuts show Congress may be ending its series of self-imposed deficit deadlines, at least temporarily, reducing the level of economic policy uncertainty.
- We think stocks are still reasonably priced.