Market Extra: Dow industrials dalliance with 23,000 is a sign of the stock market’s velocity

A resurgence in the so-called Trump trade has investors once again contemplating a fresh milestone for the Dow Jones Industrial Average.

This time the most well known and oldest U.S. equity benchmark is set to hit 23,000 for the first time ever, notching its fourth straight 1,000 point climb over the past 12 months. That would be the largest number of such 1,000 point moves within a calendar year in the benchmark’s 120+-year history, according to WSJ Market Data Group.

The Dow DJIA, +0.16%  remains less than 135 points away from the next milestone, and if it manages to clear it within the next 14 trading sessions, the blue-chip average would notch its third fastest climb to 1,000-point milestone since mid July (see table below).

To be sure, the higher the DJIA rises, the smaller each 1,000-point move is in percentage terms, but the climb to all-time highs has captured public attention, even if some market strategists and bears are concerned that valuations have gotten too lofty, too fast.

Dow milestones 1st close above that level Dow final close No. of trading days to milestone (ranking)
23,000 ? N/A ?
22,000 Aug. 2, 2017 22,016.24 107
21,000 March 1, 2017 21,115.55 24 (1)
20,000 Jan. 25, 2017 20,068.51 42 (2)
19,000 Nov. 22, 2016 19,023.87 483
18,000 Dec. 23, 2014 18,024.17 120
17,000 July 3, 2014 17,068.26 153
16,000 Nov. 21, 2013 16,009.99 139
15,000 May 7, 2013 15,056.20 1,460
14,000 July 19, 2007 14,000.41 59 (3)
13,000 March 25, 2007 13,089.89 127
12,000 Oct. 19, 2006 12,011.73 1,879
11,000 May 3, 1999 11,014.69 24 (1)
10,000 March 29, 1999 10,006.78 246
9,000 April 6, 1998 9.033.23 182
8,000 July 16, 1997 8,038.88 105
7,000 Feb. 13, 1997 7,022.44 85
6,000 Oct. 14, 1996 6,010 226
5,000 Nov. 21, 1995 5,023.55 189
4,000 Feb. 23, 1995 4,003.33 975
3,000 March 17, 1991 3,004.46 1,080
2,000 Jan. 8, 1987 2,002.25 3,573
1,000 Nov. 14, 1972 1,003.16 21,652
Source: WSJ Market Data Group

So, why is the market headed higher?

Some of the recent gain has been attributed to optimism around President Donald Trump’s tax plan. That enthusiasm centers on the belief that he will implement Wall Street-boosting measures, like deregulation and tax cuts, that will pave the way for a further clamber higher for risk assets.

Check out: Low stock volatility won’t last forever, but the quiet may not end quickly

The Dow has booked 48 record closes, so far in 2017, the S&P 500 has logged 44, while the Nasdaq Composite has registered 56 all-time highs in 2017.

Since the 2016 election, won in shocking fashion by Trump over Democratic rival Hillary Clinton, the Dow has climbed 25%, the S&P 500 index SPX, +0.13% has advanced 19.4%, the Nasdaq Composite Index COMP, +0.23% has returned about 27.2%, and a popular index of small companies, the Russell 2000 index RUT, -0.12% has jumped 26.1%. That’s as of early Tuesday trade.

Read: Why stock market records may just be a mirage caused by dollar weakness.

Slightly rosier economic indicators of late, domestically and abroad, and upbeat expectations for corporate results, even if the bar tends to be lowered, also have helped buoy equity indexes.

It is no wonder why Wall Street investors are pointing at signs of a so-called meltup in stocks, and heralding the uncanny rise of assets in every sector, region and class.

Perhaps the biggest question is how rising rates off ultralow levels, as the Federal Reserve continues to tightening monetary policy, lifting borrowing costs on individuals and companies, will eventually affect this unabated rally.

—Ken Jimenez contributed to this article

Filed in: Top News Tags: 

You might like:

numberFire: NFL: 10 stats to know from both conference championship matchups numberFire: NFL: 10 stats to know from both conference championship matchups
If Vikings win, historic home-field Super Bowl could require steepest ticket ever If Vikings win, historic home-field Super Bowl could require steepest ticket ever
Jeff Reeves's Strength in Numbers: Prepare for these 5 tech stocks to move big on earnings Jeff Reeves's Strength in Numbers: Prepare for these 5 tech stocks to move big on earnings
Why Apple’s new campus and Amazon’s HQ2 probably won’t be neighbors Why Apple’s new campus and Amazon’s HQ2 probably won’t be neighbors
Is gold on the verge of breaking out? Is gold on the verge of breaking out?
Anniversary of Women’s March carries new message: Power to the Polls Anniversary of Women’s March carries new message: Power to the Polls
Tesla’s roaring start to 2018 is costing short sellers $1 billion Tesla’s roaring start to 2018 is costing short sellers $1 billion
The Sniff Test: Apple didn’t say it was hiring 20,000 new workers, nor bringing back all of its overseas cash The Sniff Test: Apple didn’t say it was hiring 20,000 new workers, nor bringing back all of its overseas cash

Leave a Reply

Submit Comment
© 0755 Stock Investors News. All rights reserved. XHTML / CSS Valid.