Dow’s streak now longest since ’87
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.