Blue Chip Stocks
Blue chip stocks have continued to increase as the Federal Reserve announcement on maintaining low interest buoyed the optimism in the market. The Dow Jones increased by 0.6 percent or 72.35 point as it closed at 12,763.31, its highest level in nearly three years as blue chip stocks ended on a high note.
The blue chip stocks were led by Boeing, which increased by 3.2 percent or $2.43 closing at $78.55. Procter & Gamble also ended higher closing at $64.50 or an increase of 0.8 percent or $0.48. The positive growth of blue chip stocks also helped the Nasdaq to close at 2,872.53, increasing by 0.1 percent or 2.65 points. The S&P 500 also ended higher at 1,360.48, an increase of 0.4 percent or 4.82.
Blue chip stocks may have boosted the Russell 2000 as it closed at 861.55, an increase of 0.4 percent or 3.24 points. The increase in pending home sales did not affect the market that much as the GDP considerably slowed down despite the increase of blue chip stocks. The market was generally passive to the release of the economic date during the quantitative easing program of the Federal Reserve as blue chip stocks continued their increase.
Even as blue chip stocks increased, some analysts have indicated that the end of the quantitative easing program will be interesting since the market will remain quiet in the next few months. With the increase in blue chip stocks and earnings being in the limelight these days, Sprint Nextel indicated an increase of 6.7 percent or $0.32 as the company reduced its losses in the first quarter.
Akamai Technologies and Aetna has also increased to 34.94 and 41.45 respectively as blue chip stocks recently continued its climb.
Despite the increase in blue chip stocks, Starbucks shares went down by 0.8 percent or $0.31 as it indicated that increasing commodity expenses will likely affect its balance sheet. Shares of Microsoft Corp decreased by 1.3 percent or $0.33 hitting 25.71, while Constellation Energy increased by 5.7 percent or 1.96 at 36.26 even as blue chip stocks increased.
