The Trump Effect: DJIA, S&P 500 Mark Record Highs

The Trump Effect: DJIA, S&P 500 Mark Record Highs

The Trump Effect: DJIA, S&P 500 Mark Record Highs

$DIA, $SPY, $QQQ, $RUTX, $VXX

Thursday, Wall Street delivered another set of milestones as buying drove US stocks due North, driving the DJIA above the all-time high it closed at in January, marking the 100th record high for DIA since President Trump took the Oval Office in November of Y 2016

The S&P 500, the benchmark for many index funds, also hit a new high, eclipsing the peak it reached last month.

Among those touting the new records was President Donald Trump, who said on Twitter: “S&P 500 HITS ALL-TIME HIGH Congratulations USA!”

Some of the economic data that came out today continued to show strength. Given the strength in the economy, backed by the stimulus from tax reform as well as just fiscal stimulus in general, that should be able to offset some of the impact that we’re going to get from tariffs as we go into the end of the year.

The DJIA and S&P 500 were on course to set record highs from the open Thursday as investors pored through a batch of economic data released before the open

The US Labor Department’s weekly tally of applications for unemployment aid was lower than expected, with claims slipping last week to 201,000. That’s the lowest mark since November 1969.

An economic index from the Fed’s bank in Philadelphia also topped forecasts, and the Conference Board’s index of leading economic indicators, designed to anticipate economic conditions three to six months out, rose 0.4% last month. While that came in slightly below forecasts, it still suggests the economy is on sure footing.

The National Association of Realtors (NAR) said sales of previously occupied homes were flat in August after declining the previous four months. Separately, mortgage buyer Freddie Mac said the average rate on 30-year, fixed-rate mortgages jumped to 4.65 percent this week, the highest level since May.

Starting Monday, the US will place a 10% tariff on another $200-B worth of Chinese goods. The tariffs will rise to 25% on 1 January 2019. Beijing has said it would take “counter measures,” which includes hitting $60-B worth of US imports, including coffee, honey and industrial chemicals, with retaliatory taxes.

Part of why we saw such significant upside today is the amount of the tariffs was less than expected. The market is optimistic that we will resolve this issue before the end of this year.

Thursday, the major US stock market indexes finished at: DJIA +251.22 at 26656.98, NAS Comp +78.19 at 8028.23, S&P 500+22.80 at 2930.75

Volume: Trade on the NYSE came in at 815-M/shares exchanged

  • NAS Comp +16.3% YTD
  • Russell 2000 +12.0% YTD
  • S&P 500 +9.6% YTD
  • DJIA +7.8% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
20 September 2018 QQQ 184.75 Bullish (0.29) 182.92 186.74
20 September 2018 DIA 266.56 Very Bullish (0.60) 264.56  None
20 September 2018 SPY 293 Bullish (0.45) 291.70 298.98

Stay tuned…

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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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