With the Dow Jones Industrial Average setting a new all-time closing high today, taking a moment to consider how far we have over the past few years is important. The last all-time high was set in 2007, just before the financial crisis, the credit squeeze, and the start of the Great Recession.
You could argue that from a number of standpoints, we’re back to where we were in 2007. But although the major indexes are at the same price levels, stocks are much cheaper today than they were in 2007. The S&P 500 still has about 25 points to go until it breaks a new all-time high record. But back in 2007, the index had a price-to-earnings ratio above 65, while today it’s only 17.5.
The Dow’s winners
The Dow’s best-performing component of the day was Cisco Systems, Inc. (NASDAQ:CSCO) , which saw its shares rise by 2.3%. Although the Dow has now broken its all-time high record, Cisco Systems, Inc. (NASDAQ:CSCO) remains well below its all-time highs and fairly lower than the mid-$30 price range it traded in back during 2007. Even so, the networking giant is now within striking distance of its 52-week high, and investors seem confident that as the economy improves, so will Cisco Systems, Inc. (NASDAQ:CSCO)’s profits.
After falling 1.11% yesterday, shares of United Technologies Corporation (NYSE:UTX) ended today up 2.12%. The move higher followed U.S. Air Force Lt. General Christopher Bogdan’s speech at a defense conference, where he reassured the audience that the F-35 fighter jet program is not in trouble. Last week, comments he made were apparently taken out of context. But today, he made it clear that while the Defense Department’s most expensive program has had problems, the F-35 is still on track, and costs are beginning to come down. United Technologies subsidiary Pratt & Whitney is scheduled to provide 4,000 engines throughout the life of the program.
Another stock that fell yesterday but posted a strong gain today was Hewlett-Packard Company (NYSE:HPQ) . After dropping by 0.79% on Monday, shares rose by 2% today. Earlier today, the ISS, a well-known proxy advisory firm, released a statement recommending that Hewlett-Packard Company (NYSE:HPQ) shareholders vote against re-electing a number of the company’s board members. Because of their roles in approving the ill-fated Autonomy acquisition, the ISS thinks Chairman Ray Lane, John Hammergen, and G. Kennedy Thompson should be removed from their seats. HP eventually wrote down $8.8 billion of the $10.3 billion it paid for Autonomy.
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The article The Dow Breaks a Record, Thanks to These Stocks originally appeared on Fool.com.
Check back daily as Matt gives the rundown on the Dow’s winners and losers of the day or follow him on Twitter @mthalman5513. Fool contributor Matt Thalman has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems (NASDAQ:CSCO).
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