Will the stock market continue to rise?

Mark Teed: We're overdue for a correction

(AP Photo/Richard Drew)

CHICOPEE, Mass. (WWLP/AP) – U.S. stocks finished at record highs as the Dow Jones industrial average approached 17,000 points for the first time.

The market rose following reports showing that manufacturing in the United States and China expanded in June.

Despite the good news, Mark Teed with Raymond James Financial told 22News we’re overdue for a correction. He said, “It’s been almost five years since we’ve had a ten percent correction and it’s going to be violent, and people will get scared because it hasn’t happened in so long but it’s normal, expect it, from there we can go much higher after that.”

Other stocks that made big moves Tuesday:

  • Netflix jumped $32.50, or 7.4 percent, to $473.10 after analysts at Goldman Sachs raised their outlook for the streaming video company. Goldman estimates that Netflix’s potential audience of subscribers will double over the next three years as the company expands internationally.
  • Twitter rose $1.08, or 2.6 percent, to $42.05 after analysts at Stern Agee raised their estimates for the company’s earnings for next year and said that the social media company should benefit from increased use during the World Cup. The company also said today that it was hiring Anthony Noto, a Goldman Sachs executive, as its new chief financial officer.
  • GM gained $1.29, or 3.6 percent, to $37.59 after reporting its June sales figures. Its sales gains were led by the Buick Encore small SUV, which gained 82 percent.

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