A new bull market is born. The Nasdaq closed at an all-time high Monday as Wall Street extended Friday's huge gains. Investors scooped up badly beaten shares and fed on energy stocks after major oil producers agreed to extend a deal on record output cuts.
The Nasdaq ended 1.1% higher. Its mercurial 44% climb from its spring lows confirmed that a new bull market began on March 23. The S&P 500 tacked on 1.2%, turning positive for the year. The Dow soared 1.7%.
But SMH Group CEO George Ball (NYSE:BLL) says the party won't last:
"I think corporate earnings in 2021 are going to be much lower than anybody's predicting at this point. Lower earnings tend to coincide with lower multiples; therefore, I think that recent history aside, the next move of the market is much more probably down than up."
Companies that had taken a pounding continued their resurgence, including shares of plane maker Boeing (NYSE:BA) and cruise operators Carnival (NYSE:CUK) and Norwegian.
Investors took profits on high-flying stay-at-home stocks as the U.S. economy further reopened. They included Netflix (NASDAQ:NFLX) and workplace messaging platform Slack Technologies (NYSE:WORK).
Shares of Tesla (NASDAQ:TSLA) zoomed higher. Sales of its mass market Model 3s made in China more than tripled in May compared to April.