Weekly Wrap: Dow Hits 22,000, Apple Impresses

The Dow crossed through the 22,000 barrier this week, but what does the new record say about stock valuations? Not much that we didn't know before. Morningstar's market fair value (which measures the median value of the price of a stock in our analyst coverage area divided by our estimate of its intrinsic value) continues to hover in the slightly overvalued range (1.02). This metric has been fairly range-bound during the past year, hitting a 52-week high of 1.05 in June and a 52-week low of 0.96 in November of 2016 before the presidential election.

But the stability of this measure obscures that there is still a broad range of valuations in the market. Just looking at the 30 stocks in the Dow valuations range from nearly 40% overvalued (

And for investors not picking individual stocks but still worried about prices, Christine Benz offers some advice here on what to do. In short, this might be a good time to double check your asset allocation and rebalance if need be.

A strong showing by

Damien Conover sees

This week also saw two high-profile CEO departures. At

While we think a fresh perspective could be beneficial, we've viewed McCoy's strategic roadmap as prudent: Reinvest in the training and retention of the representative base and extract excess costs from operations to fuel further reinvestment in the business. While we never anticipated this endeavor would yield improvement overnight, the lack of progress to date is far from a positive, and we aren't surprised by the decision to make a change at the top.