What to watch

After tease, Dow again takes aim at 22,000

Dow 22,000 watch is on — again. The blue-chip stock gauge came within 10 points Tuesday of topping Dow 22K before retreating and finishing up 73 points at another record high of 21,963.92.

It kicks off Wednesday 36 points shy of the biggest round number it has ever flirted with.

To be sure, while 22,000 would mark the Dow’s highest level ever, it isn’t generating the wow factor Dow 10,000 did in spring 1999. Back then, stocks were the topic of conversation in taxis, at cocktail parties and anywhere people could chat about skyrocketing dot-com stocks.

Lack of buzz or not, the latest Dow surge should not be dis- missed, as it suggests the market rise that began in 2009 still has some juice.

Stocks such as Boeing and Caterpillar have benefited from a global economic rebound and robust U.S. corporate profits.

Still, the Dow’s collision course with a new high-water mark raises the typical questions about whether now is a good time to jump into the rising market or whether to reduce stock holdings and protect against downside risk if the rally fades.

Erik Davidson, chief investment officer at Wells Fargo Private Bank, is getting “increasingly cautious.” What worries him? The market’s high prices relative to earnings and the fact the market hasn’t suffered a big drop since Brexit in June 2016.

“We anticipate the market will have a bit of a pause in the second half of the year,” he says.