US has rest of the world to thank for Dow 22000 milestone
Companies with big overseas exposure have led America's stock rally
The Dow Jones Industrial Average popped its head over the 22000 mark for a moment on Wednesday, a new milestone after climbing more than 2000 points this year. As the Wall Street Journal writes, Americans can thank the foreigners for that.
Boeing accounted for 563 points of the 2000, with 60% of its sales coming from overseas. Apple, which gets two-thirds of its sales abroad, added another 283 points. McDonald’s, which took the number three spot with 239 points, also sees about two-thirds of its sales come from outside the US.
And it’s not just in the Dow Jones that greater overseas exposure equals greater performance.
Data from FactSet and S&P Dow Jones Indices shows that companies in the top half of the S&P 500 by overseas exposure had a median return of 16%. That compares to only 8% for companies in the bottom half.