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Montevideo, November 21st 2018 - 07:54 UTC

Post-election rally pushes Wall Street to new records: Dow Jones above 19.000

Wednesday, November 23rd 2016 - 17:06 UTC
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Dow Jones industrial average was up 67.18 points, 0.35%, to 19,023.87; S&P 500 gained 4.76 points, 0.22%, to 2,202.94 and Nasdaq, 0.33%, to 5,386.35. Dow Jones industrial average was up 67.18 points, 0.35%, to 19,023.87; S&P 500 gained 4.76 points, 0.22%, to 2,202.94 and Nasdaq, 0.33%, to 5,386.35.
The Dow took 121 trading days to reach 18,000 from 17,000, but has since crawled along, taking another 483 days to breach 19,000. It is now up 9.2% for the year The Dow took 121 trading days to reach 18,000 from 17,000, but has since crawled along, taking another 483 days to breach 19,000. It is now up 9.2% for the year
Investors see President-elect Trump's promises of tax cuts, higher spending on infrastructure and less regulation as beneficial to certain industries Investors see President-elect Trump's promises of tax cuts, higher spending on infrastructure and less regulation as beneficial to certain industries

United States stocks extended their post-U.S. election rally Tuesday with moderate gains that pushed the Dow above 19,000 for the first time and the three major indexes to record closing levels for a second straight day. The S&P 500 ended above 2,200, led by gains in telecommunications, up 2.1%, and consumer discretionary up 1.2%. The small-cap Russell 2000 index also set another record-high close.

 Stocks have mostly rallied since the November 8 election. Investors see President-elect Donald Trump's promises of tax cuts, higher spending on infrastructure and less regulation as beneficial to certain industries, including banking, industrials and health care.

Robert Pavlik, chief market strategist at Boston Private Wealth in New York, said big gains that started in financials and industrials just after the election are spreading to other sectors, suggesting the rally may still have legs.

“You're seeing some strength across the board. That's a healthy sign and indicates to me that we're in a bull market,” he said. “The market started to give up some gains last week, but that didn't increase selling pressure. It actually drew people back in.”

Besides being optimistic about potential fiscal policies of the new administration, investors may be feeling ”things aren't as mixed up as people were worried about” under Trump, Pavlik said.
Trading volume is slipping, though, ahead of the U.S. Thanksgiving Day holiday Thursday.

The Dow Jones industrial average ended up 67.18 points, or 0.35%, to 19,023.87, the S&P 500 gained 4.76 points, or 0.22%, to 2,202.94 and the Nasdaq Composite added 17.49 points, or 0.33%, to 5,386.35.

All three indexes also hit record intraday highs. The Dow took 121 trading days to reach 18,000 from 17,000, but has since crawled along, taking another 483 days to breach 19,000.

The Dow is now up 9.2% for the year so far, while the S&P 500 is up 7.8%. But some market participants question if the rally is sustainable, with the S&P 500 trading near 17.3 times forward 12-month earnings, above the 10-year median of 14.7 times, according to StarMine data.

Dollar Tree, up 8.2% at US$88.68, was the biggest percentage gainer among discretionaries. The dollar-store chain reported a better-than-expected quarterly profit.

The health care index, which had a sharp run higher following the election, was off 1.4%, leading the decliners. Medtronic tumbled 8.7% percent to US$73.60 after the medical device maker reported quarterly revenue that missed expectations and cut its full-year adjusted earnings forecast.

After the bell, shares of Urban Outfitters were down 8.2% after the retailer reported sales that missed analysts' expectations.

About 7.3 billion shares changed hands on U.S. exchanges, compared with the 8.1 billion daily average for the past 20 trading days, according to Thomson Reuters data.

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  • chronic

    What say ye now, ole Bag?

    Nov 23rd, 2016 - 05:12 pm 0
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