On Thursday, November 30, as the Republicans appeared to be closing in on 50 votes to secure the promised tax cuts that should help corporate earnings, the Dow leaped 331 points, a 1.4 percent increase to cross the 24000 (24272) threshold in a near-record 30 trading days. It represents a 5900 point increase since the November 2016 presidential election, or a 32 percent increase and 23 percent year-to-date uptick. It is the fifth 1000-point increase since that election.
A spate of good news for investors accompanied the latest surge, including a growing economy (3% recent quarterly GDP), upbeat consumer confidence, relaxation in regulations including for banks, a new Fed chief promising more steady monitory policy, on oil a sweet spot and big technology companies promising more profit making applications and innovations.
Dow crossed the 23000 on October 18, 2017:
“The Dow is benefitting from a world that appears in a synchronized recovery with Europe, China and Pacific Rim countries all experiencing steady growth after the lingering Great Recession. Federal Reserve is holding calm, oil has stayed in a tight range and earnings are still good. No doubt, a correction is coming, but as of today, the market looks slated for more growth.”
Friday, December 1, 2017
Dow Leaps on Tax Cut News
Posted by Floyd Ciruli at 3:22:00 PM
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