Dow Races Past 21000 For First Time After Trump Strikes Conciliatory Tone

Tammy Harvey
March 3, 2017

United States stocks have traded lower, with the Dow set to snap a 12-day winning streak, as financial and consumer discretionary stocks weigh and investors awaite President Donald Trump's speech to a joint session of Congress.

Investors mostly focused on the latest batch of company news and earnings reports.

THE QUOTE: "President Trump's address will undoubtedly create short term volatility this morning in most markets". This led to an overnight run in the Dow futures, which we are up about 85 points heading into the 7AM hour here in New York City.

Mr Trump's speech lacked "fresh content for the market to trade off, with big tax cuts, deregulation and an infrastructure plan being mentioned but not supported by any details", Mr McGuire noted. On Monday the president told a group of governors that his budget would propose increasing defense spending by $54 billion while cutting domestic programs and foreign aid by the same amount.

Wall Street saw a record-setting start Wednesday. He didn't echo recent attacks on the media, complain about fake news or mention spats with celebrities and other topics considered "off message".

"It's not necessarily the rate increase that matters". Seventy percent also said their impression of the president had improved since he took office on January 20.

It only took 24 trading days for the Dow to reach 21,000 points, from 20,000 - matching the fastest climb rate that was last seen on May 1999.

That also means the giants on the Dow, including Goldman Sachs, J.P. Morgan, and Apple, have accounted for 25% of the S&P 500's rise since Trump's election, though they account for just 6% of the companies on the index.

The Nikkei average closed up 171.26 points or 0.88 percent at 19,564.80 after hitting as high as 19,668.01, its highest level since December 2015, earlier in the session.

Brokerage stocks showed a significant move to the downside on the day, dragging the NYSE Arca Broker/Dealer Index down by 1.9 percent. Most of indices like Dow Jones Industrial Average 2 Minute (INDEXDJX.DJI), S&P 500 (INDEXSP:INX) and NASDAQ Composite (INDEXNASDAQ:IXIC) set to close with about 4 percent gain in February.

Investors have pocketed a tidy sum - at least on paper - in the Trump era. That's the biggest single-day gain for the index, the benchmark favoured by professional investors, since early November.

Trump's pledge to work across the aisle with Democrats raised hopes on Wall Street that his agenda will now have a better chance of being implemented.

"Whenever he's not talking, there's enough momentum to keep it moving forward".

"The market has shifted from being anxious about lower growth for longer, to expecting more growth sooner rather than later", said Chris Zaccarelli, chief investment officer for Cornerstone Financial Partners.

"As the last reporting bank, the surprise element of a strong quarter is missing", said RBC Capital Markets analyst Darko Mihelic. "Fears of a stumbling administration have been allayed, at least for now".

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday.

Other reports by Ligue1talk

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