Dow Jones Industrial Average Climbs Close To Record Highs

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The Dow Jones Industrial Average (DIA) started the week higher on Monday, closing at 14,127, a gain of 0.27% on the day, and just below its all time record closing level of 14,164 which was set in October, 2007.

The Dow Jones Industrial Average (DIA) has been hovering just below its record high since last week when it came within 15 points of its record in intra-day trading. Yesterday’s close left the Dow Jones Industrial Average (DIA) less than 40 points from all time highs.

Other major U.S. market indexes and their ETFs were also strong on Monday with the S&P 500 (SPY) gaining 0.46%, the Nasdaq 100 (QQQ) adding 0.43% and the Russell 2000 (IWM) jumping 0.21%.

Gold (GLD) fell 0.29% to close at $1572.40/oz while oil (USO) dropped 0.99% to finish the day at $90.12/bbl.

Apple Computer (AAPL) continues languishing in the depths of a bear market with a decline of 2.42% to $480.93 at the close after hitting a one year low during the trading day.

The day started on a down note as U.S. markets reacted to a sharp overnight dip in the Shanghai Composite which saw the index fall 3.7%. However, the Dow Jones Industrial Average (NYSEARCA:DIA) and other major U.S. indexes recovered during the day’s session on support from Fed Vice Chairman Janet Yellen’s remarks backing quantitative easing and the ongoing belief that the sequestration cuts are going to be a non event for U.S. stock markets.

The sequestration cuts moved ahead on Monday as Republicans and Democrats continued their standoff after sniping at each other on the weekend talk shows. With analysts projecting declines in U.S. GDP in the range of 0.2% to 0.5%, the cuts could likely leave the U.S. with a negative GDP as last week’s Q4 estimate registered 0.1% compared to the previous estimate of -0.1%.

The week ahead brings a string of important economic reports culminating with the Non Farm Payrolls report on Friday and so there will be plenty of news for investors to digest as the week unfolds.

Bottom line: Investors remain unconcerned about fundamental headwinds like the slowdown in China and Europe and the upcoming mandatory Federal spending cuts as they remain focused on a potential record high for the Dow Jones Industrial Average. (NYSEARCA:DIA) Undiminished faith in the support of the Federal Reserve and its ability to stave off recession and higher unemployment continues to power major U.S. stock indexes as we enter March. However, major U.S. stock indexes still remain locked in the recent trading range as this epic battle between bulls and bears continues.

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