DJIA Post Another Record, Investors See Tax Cuts Ahead

$DIA, $SPY, $QQQ, $VXX

The DJIA marked aother record high Monday, with banks and retailers surging and tech falling as investors realigned their portfolios in hopes of benefiting from expected corporate tax cuts.

The S&P 500 ended with a small loss after hitting an intra-day all-time high on the day, while the technology-heavy NAS Comp dropped 1.05%.

Bank of America, (NYSE:BAC), JPMorgan Chase (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), and Citigroup (NYSE:C) rose over 2% after the US Senate approved its tax bill early Saturday.

This will likely result in increased dividends and share repurchases, and that makes valuations more reasonable and should extend The Trump Rally.

Investor money rotated out of techs to buy banks, department stores and other stocks seen benefiting from lower taxes by selling technology stocks, which have become relatively expensive after leading the market’s gains this year.

People are rotating into consumer discretionary and away from technology because of tax advantages from the new bill.

Monday, the US major stock market indexes finished at: DJIA +58.46 at 24290.05, NAS Comp -72.22 at 6775.35, S&P 500 -2.78 at 2639.44

Volume: Trade on the NYSE came in at: 987.2-M/shares exchanged.

Breadth: Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on NAS, a 1.27-to-1 ratio favored decliners.

• NAS Comp +25.9% YTD
• DJIA +22.9% YTD
• S&P 500 +17.9% YTD
• Russell 2000 +12.9% YTD

Stay tuned…

  bac, Banks, benefits, bill, C, DIA, DJIA, GOP, investors, JPM, money, QQQ, rally, record, retailers, SPY, stocks, tax, Trump, VXX, WFC

The following two tabs change content below.

• Bio
• Latest Posts

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

Latest posts by Paul Ebeling (see all)

• Expose Yourself to Sunlight - August 20, 2019
• Savvy Managed Money Back to Stocks in 2 Weeks - August 20, 2019
• Ferrari (NYSE:RACE) The Future of Supercars Aligned with the Past - August 20, 2019