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Markets

Economic defensive stocks drive Wall Street to record

Opening sequence

Opening sequence

Markets

Economic defensive stocks drive Wall Street to record

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COMING UP:Economic defensive stocks drive Wall Street to record

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Transcript

00:00:00
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APPLAUSE
The stock market party getting louder Tuesday. I'm Reuters reporter, Colum Higgins, in New York. The Dow Jones Industrial Average closing in record territory. The S&P 500 closing at a record high for the second day in a row and while the NASDAQ did not close at a record high, it has erased all of its losses for 2016.
00:00:21
It's been 14 months since Wall Street hit record highs, and the sectors driving this historic rally give an interesting glimpse into what investors are really thinking. The groups leading the charge are the places where investors go when there's not a lot of confidence in the economy. Think companies that provide things you can't live without.
00:00:38
That's your telecoms like Verizon, which is trading near an all time high. Consumer staples like Proctor and Gamble, and utility companies like Duke Energy. Faring even better, companies that have run their businesses with perfection. Investors handsomely rewarding Amazon for taking over the world of retail, online and offline.
00:00:59
Its stock price surging 76% to a record high since the market's last peak, making it the fifth most valuable company in America. And Facebook, which has quickly become the king of social media and the go-to for online advertisers, has seen its share price soar even further, doubling in just 14 months.
00:01:19
But the noticeable stock left out of all this celebrating? Apple. Dogged by persistent worries that it doesn't have a blockbuster follow-up to the iPhone, Apple shares have tumbled 24% in the same period.