The Trump Rally Extends, DJIA Marks Its 8th Straight Record High

The Trump Rally Extends, DJIA Marks Its 8th Straight Record High

The Trump Rally Extends, DJIA Marks Its 8th Straight Record High

$DIA, $SPY, $QQQ, $VXX

The DJIA (Dow Jones Industrial Average) ended on its 8th straight record high Friday, with gains in banks after the NFPs data showed US employers hired more workers than expected in July.

The strong jobs report may help clear the way for the Fed to announce a plan to start shrinking its $4.2-T bond portfolio in September, and could strengthen its case to raise rates for the 3rd time this year in December.

  • Sept WTI Crude Oil futures settled 0.18 higher at 49.44 bbl.
  • Sept Nat Gas settled -0.03 to 2.777 MMBtu
  • Dec gold lost 3.70 to 1264.50 oz
  • September Silver lost 0.34 to 16.27 oz
  • September Copper settled flat at 2.88 lb

The US Labor Department report showed NFPs (nonfarm payrolls) increased by 209,000 jobs last month, above the 183,000 rise expected by economists polled.

With banks standing to benefit from higher interest rates, the S&P financial index .SPSY rose 0.72%. Goldman Sachs (NYSE:GS) rose 2.59% and was the top contributor to the Dow’s gain on the day.

Perceived chances of an interest rate hike by the US  central bank by the end of the year increased to 50% from 46% after the release of the data, according to CME Group’s FedWatch tool.

Analysts, on average, expect S&P 500 earnings to have grown 12% in Q-2 and they project earnings up 9.3% for the September Quarter, according to Thomson Reuters I/B/E/S.

Friday the US major stock market indexes finished at: DJIA +66.71 at 22092.81, NAS Comp +11.22 at 6351.54, S&P 500 +4.67 at 2476.79

On the week, the DJIA climbed 1.2%, the S&P 500 rose 0.2% and the NAS Comp shed 0.4%.

Volume: Trade on the NYSE came in at: 785-M/shares exchanged.

  • NAS Comp +18.0% YTD
  • S&P 500 +10.6% YTD
  • DJIA +11.8% YTD
  • Russell 2000 +4.1% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.54) Very Bullish (0.52) Very Bullish (0.56) Very Bullish (0.54)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.17) Neutral (0.09) Bullish (0.44) Neutral (0.00)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.28) Bullish (0.39) Bullish (0.27) Neutral (0.17)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.38) Neutral (-0.03) Bearish (-0.47) Very Bearish (-0.62)

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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