Dow’s streak now long­est since ’87

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - ALEX VEIGA

Wall Street notched an­other set of mile­stones Mon­day as the Dow Jones industrial av­er­age closed at a record high for the 12th con­sec­u­tive time, the long­est win­ning streak for the 30-com­pany av­er­age in 30 years.

The Stan­dard & Poor’s 500 in­dex, the bench­mark fa­vored by pro­fes­sional in­vestors, also closed at a record high.

The Dow rose 15.68 points, or 0.1 per­cent, to 20,837.44. The S&P 500 gained 2.41 points, or 0.1 per­cent, to 2,369.75. The Nas­daq com­pos­ite in­dex added 16.59 points, or 0.3 per­cent, to 5,861.90. Small-com­pany stocks fared bet­ter than the other in­dexes, send­ing the Russell 2000 in­dex up 13.44 points, or 1 per­cent, to 1,407.97.

The lat­est push into the record books came on an in­de­ci­sive day for U.S. stocks that sent in­dexes wa­ver­ing be­tween small gains and losses for much of the day. They ul­ti­mately eked out tiny gains, led by en­ergy stocks, which climbed as the price of crude oil rose. Phone com­pa­nies lagged the most.

Many in­vestors were tak­ing a wait-and-see ap­proach ahead of Pres­i­dent Don­ald Trump’s speech to Congress to­day, hop­ing for de­tails of promised tax cuts, in­fra­struc­ture spend­ing and other busi­ness-friendly poli­cies.

“It’s all about pol­icy now,” said Phil Blan­cato, chief ex­ec­u­tive of­fi­cer of Laden­burg Thal­mann As­set Man­age­ment. “There’s only so much the mar­ket can de­liver when there’s still th­ese many un­knowns.”

The last time the Dow posted a longer win­ning streak was in early Jan­uary 1987, when the av­er­age rose for 13 days in a row. That streak trans­lated into a gain of 11 per­cent for the Dow. Nine months later, on Oct. 19, 1987, the Dow plum­meted more than 500 points, or about 22 per­cent, on what be­came known as Black Mon­day.

Just be­cause the Dow is on an­other lengthy win­ning streak doesn’t mean a sim­i­lar mar­ket slump is in the cards now, said Ryan Det­rick, a se­nior mar­ket strate­gist for LPL Fi­nan­cial.

A key dif­fer­ence is that the Dow went on to gain an­other 30 per­cent in the months af­ter the 13-day streak in Jan­uary 1987. By com­par­i­son, the Dow is now up about 5.4 per­cent this year, so there’s a long way to go be­fore the mar­ket be­comes as stretched as it was 30 years ago, Det­rick said.

Ex­pec­ta­tions that the Trump ad­min­is­tra­tion will ramp up in­fra­struc­ture spend­ing projects pushed up shares of ma­te­ri­als com­pa­nies. Martin Ma­ri­etta Ma­te­ri­als Inc. rose $5.21, or 2.5 per­cent, to $215.26, while Vul­can Ma­te­ri­als Co. added $2.78, or 2.4 per­cent, to $120.60. Sum­mit Ma­te­ri­als Inc. gained 50 cents, or 2.1 per­cent, to $24.25.

Trump’s speech to­day to a joint ses­sion of Congress is ex­pected to in­clude more de­tails of how the ad­min­is­tra­tion plans to carry out prom­ises to cut taxes and step up in­fra­struc­ture spend­ing.

“The mar­kets had this in­cred­i­ble run, much of it based on po­ten­tial tax pol­icy, and what ev­ery­one wants to see [tonight] is some more de­tails,” said JJ Ki­na­han, chief mar­ket strate­gist at TD Amer­i­trade.

Bench­mark U.S. crude rose 6 cents to close at $54.05 a bar­rel in New York. Brent crude, used to price in­ter­na­tional oils, slipped 6 cents to close at $55.93 in London.

Bond prices fell. The 10-year Trea­sury yield rose to 2.37 per­cent from 2.32 per­cent late Fri­day.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.