Dow closes above 19,000 for first time as Trump rally continues
The Dow Jones Industrial Average climbed to new highs on Tuesday as the stock market continues to gain steam following the election of Donald Trump.
The blue-chip index added more than 65 points to close at 19,023 points, ending the day beyond the 19,000 level for the first time in history. Meanwhile the S&P 500 ticked up 0.2% and the Nasdaq added 0.3%.
Among the biggest gainers on Tuesday were Barnes & Noble and Dollar Tree, which climbed 11% and 8%, respectively, after reporting better-than-expected quarterly earnings. Dr. Pepper’s parent company was also higher after it said it would acquire flavored water maker Bai Brands for $1.7 billion.
The rally came one day after the major indexes all closed at record highs simultaneously, which hadn’t happened since 1999, during the height of the dotcom boom.
The stock market has enjoyed broad-based gains since Trump’s victory on November 9, driven by the anticipation of market-friendly policies. In the two weeks since Americans cast their ballots, the Dow has climbed 2.4%, while the S&P 500 has added 1.9% and the Nasdaq has gained 2.5%.
There’s been a particularly sharp run-up in the stock prices of banks, as investors eye relaxed regulations under Trump, with financial behemoths like Goldman Sachs seeing their stocks surge 10% since Election Day.
Industrial companies like Caterpillar have also gotten a welcome boost as investors bet that Trump will make good on his promise to spend heavily on the nation’s aging infrastructure. Defense spending is also expected to rise under the Republican president and has boosted the share prices of companies like Lockheed Martin and General Dynamics.
Shipping companies, however, are coming off a wild week of trading in which stocks like DryShips inexplicably surged 1,500% in one week. They were largely lower on Tuesday. Energy companies also fell along with the price of oil, which slipped 0.3% to $47.90 a barrel.
It remains to be seen how the stock market will perform once Trump actually takes the Oval Office, but investors will have to look kindly at the performance of their stock portfolio under President Barack Obama. The Dow has risen nearly threefold since he was sworn into office.
no apocalypse or armageddon..much to the naysayers regret..
“The Dow Jones Industrial Average climbed to new highs on Tuesday as the stock market continues to gain steam following the election of Donald Trump.”
the donald rally eh?
“There’s been a particularly sharp run-up in the stock prices of banks, as investors eye relaxed regulations under Trump, with financial behemoths like Goldman Sachs seeing their stocks surge 10% since Election Day.”