Four Stocks Predict Economy

The number of stocks hitting new 52-week highs has been increasing with the overall market near multi-year highs. This is not surprising, however the names of the stocks hitting highs has been intriguing to me. The plethora of names suggest there is real strength in the underlying economy and that the rally should continue into the second half of 2012.

Sherwin-Williams ($SHW) - The building materials company best known for its paint supplies is hitting new highs as the housing market continues to struggle to gain footing. $SHW is showing us that the housing market may be closer to a bottom than many expect.

The Walt Disney Company ($DIS) - Theme parks, movies, and cable advertising are the name of the game for $DIS. If that is working it must be saying something about the economy.

Starbucks ($SBUX) - My bill this morning was over $10 for a lattle, bottle of OJ, and egg sandwich. And more importantly the line was 7 people deep. Again, if the economy was still struggling would we be waiting in line for $5 lattes?

Qualcomm ($QCOM) - The maker of chips for wireless devices relies on demand from consumers worldwide. Demand for new, innovative products must be pretty darn good, another positive signal.