Wednesday, October 23, 2019

Dow hits 20,000 as post-election rally resumes

-

(Reuters) – The Dow Jones Industrial Average traded above 20,000 for the first time on Wednesday, resuming a rally that began in the wake of U.S. President Donald Trump’s surprise election victory.

The rally was reignited by Trump’s signing of numerous executive orders since his inauguration on Friday.

The index came within a point of the historic level on Jan. 6, as investors banked on pro-growth policies and tax cuts from the new administration.

But the venerable index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration’s new policies.

“A seminal moment. It is just a number but it is a big number, it is certainly a flashy number,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

“There is a real belief that Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought.”

If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 would mark the second-shortest length of time between such milestones.

The 24 trading days between 10,000 and 11,000 from March 29 to May 3 of 1999 was the fastest.

The rise from 18,000 to 19,000 took the Dow 483 trading sessions.

The move since Nov. 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks – with Goldman Sachs <GS.N> and JPMorgan <JPM.N> accounting for about 20 percent of the gain.

The two banks have benefited as investors bet that Trump’s expected fiscal stimulus will trigger inflation and stoke a rise in interest rates.

On Wednesday, Boeing <BA.N> rose 2.3 percent after its earnings and Goldman Sachs <GS.N> was up 0.7 percent, helping to push the index over the top.

At 9:33 a.m. ET (1433 GMT), the Dow <.DJI> was up 97.59 points, or 0.49 percent, at 20,010.3, the S&P 500<.SPX> was up 10.33 points, or 0.45 percent, at 2,290.4 and the Nasdaq Composite <.IXIC> was up 38.17 points, or 0.68 percent, at 5,639.13.

The S&P and the Nasdaq also hit record intraday highs.

Advancing issues outnumbered decliners on the NYSE by 1,883 to 736. On the Nasdaq, 1,706 issues rose and 500 fell.

The S&P 500 index showed 51 new 52-week highs and no new lows, while the Nasdaq recorded 96 new highs and five new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)

Latest news

Millbourne Mayor Tom Kramer (D-Pa.) Goes Off On Local Papers For Using Town As ‘Political Pawn’ While Ignoring His Request to Print Letter of...

Democratic Mayor Tom Kramer of Millbourne, Pennsylvania has had it with his town being used as what...

Police locate DEAD BODY ditched on I-95 highway in Chester

Pennsylvania State Police swarmed the area just before the Commodore Barry Bridge Friday night for reports of...

Suspect sought after animals found burning alive in trashcan

Authorities are searching for clues after finding several opossums burning alive in Trainer, Pa., according to Justice...

Absconding Delaware County Sex Offender Caught

One of four sex offenders that absconded from a Delaware County ‘alcolholism treatment center’ was apprehended by authorities early Thursday morning, authorities tell yc.news.
- Advertisement -

Shaq partners with Miles College to launch HBCU initiative, and it’s an appetizing partnership to say the least

Each Historically Black College & University will soon have a Papa John's ... thanks to Shaquille O'Neal...

Missing Colwyn Boy, Tito Gleplay, 9, Found Safe

Police in Colwyn tell us that the missing 9-year-old boy has been found safe … Police say Tito Gleplay was located Wednesday and appears to be in good condition.

Must read

In 2015, District Attorney Kevin Steele claimed there was an ‘air-tight’ case against Bill Cosby, turns out there wasn’t

Montgomery County District Attorney Kevin Steele (D-Pa.) ran on a campaign promise to prosecute Bill Cosby in 2015, but he didn't have a case.
- Advertisement -

You might also likeRELATED
Recommended to you