zerohedge.com / by Tyler Durden / Aug 3, 2017 1:57 PM
From Art Cashin of UBS:
We’ve noted over the last two weeks that the Dow Industrials have been diverging from most other indices and particularly the Dow Transports. An important part of the divergence has been the relative narrowness of the rally in the Dow. In today’s WSJ, Justin Lahart took note of the narrowness:
Americans cheering the U.S. stock market’s latest milestone should pause to thank the rest of the world for making it possible. The Dow Jones Industrial Average breached 22000 Wednesday after rising more than 2000 points so far this year. Boeing counted for 563 points of that gain. About 60% of its sales come from overseas.
No. 2, contributing 283 points, is Apple, which gets two-thirds of its sales abroad.
No. 3 is McDonald’s, contributing 239 points; foreign sales count for about two-thirds of its total.
Indeed, while there are notable exceptions (hello, International Business Machines ), the greater the share of a company’s sales come from overseas, the better its stock has tended to perform this year.
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