DJIA Posts 1st 8-Quarter Winning Streak in 20 Years

DJIA Posts 1st 8-Quarter Winning Streak in 20 Years

 DJIA Posts 1st 8-Quarter Winning Streak in 20 Years

$DIA, $SPY, $QQQ, $VXX

The S&P 500 and the NAS Comp advanced to record marks on Friday, driven by gains in technology stocks, while each of the major indexes closed out the Quarter with solid gainers.

The DJIA finished up about 24 points and posted Quarterly gains of 4.9%, its 8th straight Quarter of gains for the 1st time since 1997.

Financials received a lift and marked their session highs Friday after reports President Trump met with former Federal Reserve Governor Kevin Warsh to discuss his potential nomination as Fed Chairman. The sector was up 0.34%.

It’s the longest since an 11-Quarter run that ended in September 1997, according to the data.

On the Week

Technology was the best performing of the major S&P sectors, + 0.75%, its 4th straight day of gainers to recover a dip earlier in the week.

The S&P and NAS Comp closed at records for the 3rd day running.

 

On the Month

For September, the DJIA gained 2.1%, the S&P rose 1.9% and the NAS Comp advanced 1.05% during one of the least volatile September’s in market history.

On the Quarter

The strong gains extend the DJIA’s streak of winning Quarters to 8. It’s the longest since an 11-Quarter run that ended in September 1997.

This current winning streak began during Q-4 of Y 2015 and accelerated after last fall’s election, dubbed The Trump Rally

On the Year

  • NAS Comp+20.7% YTD
  • DJIA +13.4% YTD
  • S&P 500 +12.5% YTD
  • Russell 2000 +9.9% YTD

Rising expectations for another interest rate hike by the year-end and President Trump’s tax-cut plan dominated markets for most of the week.

Friday’s economic data showed US consumer spending barely rose in August but the report did little to change expectations that the central bank would raise interest rates again in December.

Another report showed the Chicago PMI (purchasing management index), which gauges factory activity, came in better than expected for September.

This coming Monday, investors will receive 2 pieces of economic data at 10:00a EDT.

  1. The September ISM Index (consensus 57.8) and
  2. August US Construction Spending (consensus 0.2%)

The Wrap up

The DJIA rose 23.89 points, or 0.11%, to 22,405.09, the S&P 500 gained 9.3 points, or 0.37%, to 2,519.36 and the NAS Comp added 42.51 points, or 0.66%, to 6,495.96.

Advancing issues outnumbered declining ones on the NYSE by a 1.50-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored advancers.

About 6.01-B shares changed hands in US exchanges, compared with the 6.25-B daily average over the last 20 sessions.

HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.52) Very Bullish (0.58) Very Bullish (0.60) Bullish (0.38)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.42) Very Bullish (0.56) Bullish (0.44) Bullish (0.25)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.35) Bullish (0.31) Bullish (0.27) Bullish (0.46)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Very Bearish (-0.54) Very Bearish (-0.59) Bearish (-0.35) Very Bearish (-0.67)

Have a terrific weekend.

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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.

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