Stock Market on Record Charge

The old adage on Wall Street used to be "Sell in May, then go away." But not this summer. The Dow Jones Industrial average and the Standard & Poor's 500 are both at record highs. The Nasdaq is also higher.

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STEVE INSKEEP, host:

There's an old saying on Wall Street: Sell in May and then go away for the summer. But not this summer. The Dow Jones Industrial average and the Standard & Poor's 500 will start the week at record highs.

NPR's Jack Speer gives us a stock market preview.

JACK SPEER: Rich Yamarone is chief economist for Argus Research. He says when it comes to Wall Street, there's something for just about everyone this week.

Mr. RICH YAMARONE (Chief Economist, Argus Research): This is a great week to be on Wall Street. You have a bunch of economic indicators and the inflation data, the CPI and the PPI. And then if that's not enough, you have earnings announcements.

SPEER: Intel and Microsoft report earnings this week. Also due out with second quarter earnings numbers are many of the big banks, industrial firms like United Technologies, and healthcare companies like Pfizer and Johnson & Johnson. Analysts expect mostly solid numbers, which is not to say there might not be some volatility in this latest bull market.

Mr. MARK VITNER (Chief Economist, Wachovia Corporation): We're probably headed higher, but there's still some risk out there.

SPEER: Mark Vitner is chief economist at Wachovia Corporation. He says on the earnings front it's the text sectors stocks a lot of people will be watching especially closely.

Mr. VITNER: We're seeing that orders for all sorts of tech goods. Particularly things tied to telecommunications are just really strong and they hadn't been strong for a very long time.

SPEER: Finally, if all that's not enough, Fed chairman Ben Bernanke heads to Capitol Hill on Wednesday and Thursday for his semi-annual testimony on U.S. monetary policy.

Jack Speer, NPR News, Washington.

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