Dow 22K doing it old school

The few equity floor traders left at the NYSE — you know him from their standing around the kiosks in the live shots on the financial shows during the day — have their Dow 22K at the ready.

The recent moves from the FAANG stocks to the Dow 30 blue chips has to be based on valuations, since Facebook, Apple, Amazon, Netflix and Google have reached astoundingly high price/earnings ratios die to the crowded trade.

Smart money is moving into more traditional tangible manufacturing stocks to offset the surprises like Amazon’s recent reporting. CEO Jeff Bezos beat on the revenue, but tanked on the bottom line due to increased spending.

Just not enough discipline, when your P/E ratio is approaching 250 and the S&P 500 ratio is around 25.

While only Apple +28% and Microsoft +17% are in the Dow 30, Caterpillar and Boeing are having their day in the sun being up 23% and 56% this year respectfully.

So break out the party hats and streamers as the new bosses, same as the old bosses push their way back into the spotlight.

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