BlackRock's Doll: Stabilisation signs to sustain US rally

BlackRock CIO Bob Doll believes the US rally is gradually maturing into a more fundamental recovery following the best two consecutive weeks for the equity markets in nearly a decade.

With earnings expectations rising on a better-than-expected Q2 results season, the Dow Jones is in positive territory year-to-date, while the S&P is up almost 10% and the Nasdaq has climbed 25%. “The number of new highs last week was 175, while the number of lows was only 9. We have not seen this for quite some time,” Doll says. “Maybe even more important than this, though, is the character of the rally. "While the rally from early March to early May was about low-quality names and weak companies surviving, the last two weeks have been more fundamentally oriented, focusing on blue ...