Last weekend Boeing (BA) sold $85 billion worth of its new 777x aircraft in one day. Boeing shares are at an all-time high, taking off at a remarkably steep angle. It's not just jet engines. If you break down the supply line of a jet to the most basic part, the humble ball bearing, you see an industrial and consumer consumption pattern that's being widely overlooked.It's part of a trend. Scared by endless talk of bubbles in tech, investors are missing the fact that record highs for the S&P500 (^GSPC) are being pushed by old-school companies selling big ticket goods. The entire product food chain from ball-bearings in the guts of a motor to the end market sellers show a strong fundamental economy.
"Basic building blocks of industry are coming back," says Piper Jaffray senior technical research analyst Craig Johnson. "You've got industries like ball bearings and stocks like (RBC Bearings Inc) ROLL that are making all time highs." (more)