Today, the Dow Jones Industrial Average is slowly continuing its upward climb. As of 1 p.m. EDT the Dow is up just 11 points, while the S&P 500 is up about two points.
There were no U.S. economic releases today. The market is awaiting Wednesday’s release of the notes from the May 1 Federal Open Market Committee meeting. Investors hope to get more information on when the Fed will slow or stop its quantitative-easing program, in which the Fed is purchasing $85 billion worth of long-term assets each month in an effort to keep rates down and spur the economy.
Two weeks ago The Wall Street Journal‘s Jon Hilsenrath laid out the Fed’s exit strategy. He said the Fed plans to slow purchases depending on inflation and the performance of the economy. That’s in contrast to 2003, when the Fed steadily raised rates by 0.25% for 17 straight quarters. The Fed wants to give itself some leeway and avoid surprising investors with whatever action it ends up taking.
Second for the Dow today is Alcoa Inc (NYSE:AA), up 1.3% to $8.72. Alcoa Inc (NYSE:AA)’s stock has been weighed down for the past few years by overcapacity in the aluminum industry, as well as slowing demand around the world. The aluminum giant has been cutting production at its highest-cost facilities in an effort to lower capacity and combat the drop in prices. While Alcoa Inc (NYSE:AA) expects worldwide demand to grow 7% this year, that won’t mean a thing if supply grows with it.
The article 2 Stocks Leading the Dow to New Heights originally appeared on Fool.com and is written by Dan Dzombak.
Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends American Express, MasterCard, and Visa. The Motley Fool owns shares of MasterCard.
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