DJIA Is Heading For 34,400

The Dow Jones Industrial Index has set another YTD high (the 22nd this year) at 34,331 and looks poised to reach 34,400. The market has drawn support from easing concerns about rate hikes in the economy amid strong corporate earnings reports.

Most US companies have already reported their Q1 financial results, with total profit up by more than 45%, compared to the median consensus of 16% growth. This is stellar performance. Q2 guidance is now being updated as business recovery is expected to move forward at quicker and steadier pace.

Upcoming earnings reports include those from Motorola Solutions (MSI), Dropbox, Nielsen, TripAdvisor, WESCO, GoPro Inc and others.

As for interest rates, US Treasury Secretary Janet Yellen reassured investors, saying she would not predict nor suggest the Fed tighten rates. If inflation suddenly gets out of control, Yellen said that the Fed could fix it. Thus, the market's fears about a faster than required rate hike, which Yellen did not rule out earlier, were tempered.