DOW set to open over 20,000 today, 1/25/17
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The wait is over.
The Dow Jones Industrial Average on Wednesday cracked 20,000 for the first time.
After more than a month of flirting with the barrier — which is far more important psychologically and sociologically than it is in terms of stock valuations — the latest market leg higher has put the blue chip index over 20,000.
On Tuesday, both the S&P 500 and the Nasdaq hit new record intraday and closing highs.
The last time we saw the Dow get this close to 20,000 was on January 6 after the December jobs report. On that day, the Dow got as high as 19,999.63, a scant 0.37 points away from the milestone.
And so with US stocks higher and Treasury yields rising, the “Trump trade” we saw play out in the weeks after the election appears, to some extent, to be back on.
On Tuesday, stocks rallied on Donald Trump’s second day in office as Trump with materials stocks leading the way after Trump signed orders that clear the path to complete the Keystone XL and Dakota Access pipelines. A New York Times report late Tuesday also said Trump would move Wednesday to order the building of a border wall between the US and Mexico.
The positive market reaction to Trump’s commentary over the last few days stands in contrast to the non-reaction we’ve seen from markets when Trump talks — and acts — hostilely on trade.
Of course, the Dow breaking 20,000 does not mean markets have had all their concerns about Trump addressed — it just means stocks have traded a bit higher in recent days. And, certainly, there are still complications to work through on tax cuts and infrastructure spending, which are the positive drivers of this trade, as well as trade policy, which poses the biggest downside risk.
And of course, there is nothing inherently meaningful about the Dow hitting 20,000 beyond it being a reflection of how much investors want to pay for a cut of future corporate profits.
But as a psychological mile-marker Dow 20,000 does matter.
The Dow is the people’s index and is the one you’re most likely to find quoted in non-financial news reports about the stock market. And while this fact certainly rankles market participants who know the cap-weighting of the Dow is sort of nonsensical, or that the Wilshire 5000 is the real way to capture the total US stock market, public perception matters.
And now we get to say the Dow cracked 20,000 for the time — and get back to focusing on almost anything else.
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This market is scary hot and yet many financial people are talking Dow 22,000 or even 25,000....whoa.
This market is scary hot and yet many financial people are talking Dow 22,000 or even 25,000....whoa.
And it closes Wednesday at 20,068.51 so what's next?
GO BUCKEYES, BROWNS, INDIANS, CAVS, YSU, NAVY and yes I like ND! -
"And they don't really know even what they're talkin' about And I can't imagine what empty heads can achieve."
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Cal will claim it was all Trump
It has been going up a lot since trump's election. It stagnated a bit in 206 because nobody knew WTF was going to happen. Now they do and Trump is all about privatising and deregulating all of the things, meaning big boosts for companies making up things like the Dow.
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Cal will claim it was all Trump
Actually some credit should go to Hillary Clinton....because she lost.
Tax cuts, deregulation and economic spending and the corporate earnings is what is really spurring on this continuing rally, will it last well it depends on the Trump first 100 day plans and what will really become fact vs just rhetoric. If for whatever reason they stall the market may stall but if they become true lookout 22,000 plus.
Even a Democrat could love that, well an investing Democrat.
Also remember Dow 10,000 to 20,000 is a 100% gain, 19,000 to 20,000 is a 5% gain so going forward the per cent gain per 1,000 is smaller gain wise the same for losses.
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Friday 2/10/2017 close.
..... Overseas, European stocks traded slightly higher, with the pan-European Stoxx 600 (^STOXX) index advancing around 0.16 percent. In Asia, stocks closed mostly higher, as Chinese trade figures topped economist expectations.
The Dow Jones industrial average (Dow Jones Global Indexes: .DJI) rose 96 points, or 0.48 percent, to 20,268, with Caterpillar leading advancers and Wal-Mart the biggest decliner.
The S&P 500 (^GSPC) gained 8 points, or 0.35 percent, to 2,315, with materials leading 10 sectors higher.
The Nasdaq composite (^IXIC) advanced 19 points, or 0.34 percent, to 5,734.
About three stocks advanced for every decliner at the New York Stock Exchange, with an exchange volume of 471 million and a composite volume of 2.498 billion in afternoon trade.
The CBOE Volatility index (VIX) (^VIX), widely considered the best gauge of fear in the market, traded near 10.88.....
And the Russell 2000 index of small cap stocks also closed at a record high, nobody wants to get in front of this moving train which started in March 2009.
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Wednesday February 22, 2017 DJIA close 20,775 almost a month later. So what to do? It's sometimes hard to jump into a hot market, if you're in a 401(k) I'd stay the course unless you're getting ready to retire soon. A little profit taking might be OK but remember when you do that you are market timing so be careful.And it closes Wednesday at 20,068.51 so what's next?
Most of the better talking heads I watch that I trust are staying put right now. And the DJIA is up about 14% since the election....still a whoa.
...oh a side note a friend of mine wanted to go to cash before the election last year planning on retiring in 2017, some seller's remorse there BUT you make a decision and move on.
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