Bull market on Wall StreetAlthough easy money on the part of the Fed might have investors embracing riskier assets like stocks, a look at what's happening in the blue chips shows that traders have been hedging their bets.

Expectations that the Federal Reserve will enact further measures to boost the economy have stocks on a winning streak. The Dow Jones Industrial Average ($INDU), that elite bastion of blue chips, added 1,000 points over the last six weeks and enters Monday's session above 11,000 for the first time since May 3.

Dow 11,000 is nice and all, but all it really means is that stocks have been dead money for five months -- and beyond. After all, the 11,000 level has never signified anything lasting for long-term investors before. The Dow first crossed above 11,000 in 1999 and has made the trip 37 times since then, according to Bespoke Investment Group.

Pushing and Pulling on the Dow

The Dow consists of only 30 companies, and since it's weighted by price, IBM (IBM) at $138 a share has more sway on the average than, say, Bank of America (BAC) at $13 a pop. Still, since the Dow gets so much attention, it's interesting to note how its components are pushing and pulling on the average.

The Dow is off about 1.3% since it last closed above 11,000 on May 3, damped in part by BofA, Hewlett-Packard (HPQ), Microsoft (MSFT) and American Express (AXP). The chart below shows how each of the Dow's 30 component stocks has fared since May 3:



Note that IBM is the only tech stock in the Dow to post gains since May 3 -- Intel (INTC) and Cisco (CSCO) are off substantially -- despite the sector's broader gains. (Special case HP took a beating after jettisoning former Chief Executive Mark Hurd.)

Rather, defensive names predominate among the leaders: Verizon (VZ), AT&T (T), Merck (MRK), Pfizer (PFE) and Wal-Mart (WMT) are propping up the blue chips, as are consumer stocks like Coca-Cola (KO) and McDonald's (MCD).

AT&T and Verizon -- telecoms for heaven's sake! -- are bonds in drag. They don't outperform when investors have great expectations. A market playing defense is one that's anxious about the recovery. Whether the Fed can do anything about it remains to be seen.

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pdbliz

.... OUR MONEY TODAY IS JUST ....PAPER,,,,,,,!!!!!!PRINTED PAPER,,,NOT WORTH A DIME,~~~~......OUR GOVERMENT IS TAKING FROM THOSE WHO WORKS AND GIVING TO THOSE WHO DO NOT WORK,!!!! AND,,PAYING PEOPLE TO STAY HOME 99 WEEKS DOING NOTHING,,,, OUR GOVERMENT WANTS TO RAISE FOOD STAMP KIDS,!!!!! WHY WORK,,,GET MORE BENIFITS TO STAY HOME AND DO NOTHING,,AND,,THEN,,,KIDS,,,MORE YOU HAVE,,MORE GOVERMENT MONEY YOU GET... SOMETHING IS VERY BAD WRONG WITH OUT FEDERAL GOVERMENT WAY OF THINKING.!!!!

October 12 2010 at 7:55 AM Report abuse +3 rate up rate down Reply
pdbliz

THE TRUTH IS,,,,,,,,THIS IS AL A SHAM,,,,,,AMERICA IS STONE BROKE,,,,NO MONEY.. ..HOUSING IS WORSE THEN GOVERMENT TELLS YOU,,,,...WASHINGTON HAS SOLD AMERICA OUT,!!!!!!...........OUR FEDERAL GOVERMENT HAS A BIG COVER UP,!!!!!!! .....IF OUR GOVERMENT TELLS YOU,,,IT IS GOING TO BE A SUNNY DAY,,,,,,,BETTER TAKE YOUR RAINCOAT,!!!!! WHAT HAS HAPPEN TO AMERICA AS WE ONCE KNEW IT.????????

October 12 2010 at 7:50 AM Report abuse +2 rate up rate down Reply
brian05487

'Wow had an interesting conversation with a Republican morgage broker in a Southern State. He really made me wonder why I dont understand the Republican mind set. Seems he blames Obama for the state of the union. Then told me he has not paid his morgage for over two years. Hmm didn't we have a different president at that time he received his loan. ?/ Then goes on to tell me he blames the bank for allowing his family to get the loan even though he was his own broker. duh, typical Republican thought. Wants everyone to pay off his house. Says its only fair. Maybe Rush has some oxy laying around , think I would need it to understand any of this.

October 12 2010 at 6:33 AM Report abuse -2 rate up rate down Reply
1 reply to brian05487's comment
ingfp

Wow there are bad apples in every entity. However, it is factually true the Democrats have more rotten ones than Republicans. Polls really are a good telltale sign and it looks as though the ems from top to bottom are ******* wind. So before you make a comment.....have some balls and call it as it is. We need Hope and Change...it just wasn't this orchestrated and perpetual campaign that lied it's way in the White House.

October 12 2010 at 6:44 AM Report abuse +2 rate up rate down Reply
Mike

Samir makes a good point, when people save more some of that money ends up in the market. Actually the growth in savings has been, and always will be a plus for the individual and the society. Commentators often complain about the lack of consumer confidence and retail driving the economy, but saving can be considered retail, for banks, housing and big ticket items which all benefit from greater saving. After two years our economy is headed in the right direction, savings will spur growth.

October 11 2010 at 10:53 PM Report abuse +3 rate up rate down Reply
1 reply to Mike's comment
ingfp

If we have a 4 trillion annual budget, Social Security is running negative cash flow, Medicare is 6 times the Social Security debt and guess whats around the corner? How many baby boomers are on Medicare? None! The come on board in January 2011! 80 million of them with their filings! Add the Obammycare and whoaa! Unemployment? Oh well, just another nail in the coffin. You see, the world is taking a second look at the US's role as a leader. It doesn't look at us like it used to. We are weakened and have HUGE problems.We need to get educated and live like we are number one!

October 12 2010 at 6:52 AM Report abuse rate up rate down Reply
gymbo bogymm

The left wing nuts are in the market??? Hypocrites! Most of them live with mommy or get a gov check,which is the AMERICAN taxpayers money.... It's called LAZY!

October 11 2010 at 9:53 PM Report abuse +1 rate up rate down Reply
2 replies to gymbo bogymm's comment
prognesub

If you're in today's stock market you're on the government dole given the Fed's massive cash injections to keep the market from serously crashing. "It's called lazy" and lucky, hypocrit.

October 11 2010 at 10:18 PM Report abuse +3 rate up rate down Reply
gymbo bogymm

Bowlingr.....You are a perfect example of why this country is in trouble. IGNORANT!

October 11 2010 at 9:51 PM Report abuse rate up rate down Reply
newyorkclasher

Tt looks like right wing booger eating teabaggers are commenting here .

October 11 2010 at 9:46 PM Report abuse +1 rate up rate down Reply
bdyftns

My wallet is rather enjoying the Dow at 11,000 compared to 6,600. Not just the growth but the increasing dividends.....and it has nothing to do with Stimulus money. These stocks are solid, have continued to pay increasing dividends for years....yes, even in 2008. This article leaves so much out about investing. There are stock buyers and then there are investors. Stock buyers might as well go to Vegas.

October 11 2010 at 8:43 PM Report abuse -4 rate up rate down Reply
4 replies to bdyftns's comment
fishlover

Both party are same, talk same, work same and show no progress and the worse part out to destroy American dream..

October 11 2010 at 8:12 PM Report abuse +3 rate up rate down Reply
Bob

Remember everyone, we have to watch Congress and the Senate........Time for CHANGE!!

October 11 2010 at 8:03 PM Report abuse +5 rate up rate down Reply
1 reply to Bob's comment
bowlingr

Your right Bob, we need to get rid of the party of NO completely so that the Dems can put us back on track after Bush and his buddy's got us into this mess!

October 11 2010 at 9:21 PM Report abuse rate up rate down Reply