Dow Jones Industrial Average nears 22,000

Dow Jones Industial Average has hit five new record highs for five days in a row

Luke Scanlon
Trader Luke Scanlon, center, works on the floor of the New York Stock Exchange, Tuesday, Aug. 1, 2017. More solid earnings reports from U.S. companies are sending stocks higher in early trading on Wall Street. (AP Photo/Richard Drew)

SPRINGFIELD, Mass. (WWLP) – Tuesday was the first trading day of August, and the Dow Jones Industrial Average came very close to hitting the 22,000 benchmark.

It closed at 21,964 on a gain of 73 points. The Dow has been doing well recently, hitting five new record highs for five days in a row.

It’s been a good year for the stock market so far. The Dow has gained 11 percent since the beginning of 2017.

Raymond James Vice President of Investments Mark Teed told 22News these record highs are a result of two key factors.

“Earnings and employment are really driving this market right now,” Teed explained. “Nobody believes it, but the earnings are actually faster than the market. The market has to play a little catch up because earnings are exploding on the upside.”

Companies listed on the Dow, Nasdaq and S&P 500 posted strong monthly gains in the month of July. Corporate quarterly reports have been topping expectations.

But many analysts are urging caution in this bull market. Teed recommends a well-diversified portfolio that reflects your tolerance for risk to protect your assets.