The Trump Rally Extends Marking Another Record Close
- Investors bought the Dip
- DJIA outperforms
- Super earnings reports from Caterpillar (NYSE:CAT) and 3M (NYSE:MMM)
The market’s rally to record highs since last year’s US Presidential election has the feeling of being risk-free, as the S&P 500 established a record of 243 trading days without a decline of 3% from peak to trough.
Monday’s decline of 0.4% for the S&P 500 did nothing to dent the new record, which surpassed the 241-day run that ended in January 1996.
Back then, the market continued to rally despite the Southeast Asia currency crisis, the Russian debt crisis to reach new highs by Y 2000.
Attempts to call the Top have failed and, for now, the market’s stable, strong steady advance looks likely to persist, Key elements supporting the rally are well known. The global economy is strengthening and U.S. corporate earnings continue to grow.
Investors await the possibility of tax cuts on personal income and corporate earnings to boost economic growth.
The US Congress has yet to approve tax and healthcare reforms promised by President Donald Trump are expected to timely.
Central banks like the Fed, European Central Bank, Bank of Japan and the People’s Bank of China are supporting stocks with low interest rates.
Investors await President Trump’s nominee to be the next Chairman of the Fed when Janet Yellen’s term expires early next year. A Chairman with a bias to keep interest rates low would help to fuel additional stock gains.
As investors seek better gains than the low yields of government debt, they are moving into equities across the world. For the daily Global Markets Briefing go here.
Tuesday, the US major stock market indexes finished at: DJIA +167.80 at 23441.76, NAS Comp +11.60 at 6598.42, S&P 500 +4.15 at 2569.13
Volume: Trade on the NYSE came in moderate at: 777-M/shares exchanging hands
- NAS Comp +22.6% YTD
- DJIA +18.6% YTD
- S&P 500 +14.8% YTD
- Russell 2000 +10.6% YTD
| HeffX-LTN Analysis for DIA: | Overall | Short | Intermediate | Long |
| Very Bullish (0.58) | Very Bullish (0.56) | Very Bullish (0.67) | Very Bullish (0.50) |
| HeffX-LTN Analysis for SPY: | Overall | Short | Intermediate | Long |
| Bullish (0.47) | Very Bullish (0.54) | Bullish (0.45) | Bullish (0.42) |
| HeffX-LTN Analysis for QQQ: | Overall | Short | Intermediate | Long |
| Bullish (0.33) | Bullish (0.40) | Neutral (0.19) | Bullish (0.40) |
| HeffX-LTN Analysis for VXX | Overall | Short | Intermediate | Long |
| Neutral (-0.14) | Neutral (0.04) | Neutral (-0.07) | Bearish (-0.39) |
Stay tuned…
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