Donald Trump’s impeachment and weak economic data couldn’t stop the Dow Jones from hitting another record high on Thursday.
- Further confirmation of the US-China trade deal helped lift the Dow to a record high on Thursday.
- Weak economic data and the Trump impeachment drama were ignored by Wall Street, as risk appetite continued to drive the stock market higher.
- Two of the “Dogs of the Dow” performed well, helping lift the index to unprecedented levels.
The Dow Jones rallied to a record high on Thursday. The stock market cheered encouraging words from Treasury Secretary Stephen Mnuchin about the US-China trade deal while shrugging off the ongoing Trump impeachment process.
Wall Street also ignored another batch of weak data releases because traders remain confident that the trade war cease-fire will improve the economic outlook.
Dow Jones Secures Triple-Digit Rally
TheDow Jones Industrial Average(advanced) ******************************************************
The S&P (rose in tandem with the Dow, gaining 0. 36% to trade at 3, (************************************************************.
The Nasdaq was the top performer amongthe three major US stock market indices, bouncing 0. 77% to creep closer to the elusive 9, mark.
It was also a positive day for commodities; both crude oil and
the price of goldwere able to move slightly higher. Evenbitcoin was up an impressive 4%, re-taking the $ 7 , (handlefollowing an aggressive rally.
Mnuchin Reassures the Stock Market of Trade Deal Finality
Donald Trump’s impeachment
US Treasury Secretary Stephen Mnuchin buttressed the Dow Jones when he told CNBC that the US and China have concluded “phase one “Negotiations. He is confident January will see the agreement ratified. This was an important statement becauseplenty of analysts questioned whether the deal was as concrete as the White House suggested.
Dow Bulls Ignore Struggling Macro Indicators
While the Dow continues to boom, it is easy to forget that several critical macro indicators are mostly trending in the wrong direction.
Thursday broughta slew of weak economic data. Initial jobless claims exceeded estimates, the Philadelphia Fed manufacturing index collapsed, and new home sales dipped suddenly.
Economists at Nordea warn that could bring more hurdles for the US economy, but they still think a recession isn’t yet an immediate threat:
Leading indicators still point to a slowdown and the yield curve has sent its powerful recession signal. In this macro theme, we make the case for a US slowdown in the first half of (***********************************************, prompting the Fed to cut rates. An update of the ‘roadmap to recession’ theme from March confirms that a trigger is needed for the US to fall into recession and recession probability models show that only financial indicators have sent recession signals, so far.
The (Dow) rose on Thursday amid a broad risk-on rally in the US stock market.
Surprisingly, one of the stocks leading the index was “dog of the dow” Walgreens (NYSE: WBA), which managed to rise nearly 0.9%. Despite this move, the company is still down around (% in) . 3M (NYSE: MMM), another struggling DJIA stock, also rallied, securing a 2% move to the upside.
Boeing (NYSE: BA) stock was able to rise for the second straight day, with an impressive 0.7% gain.Donald Trump is getting involved in the MAX saga (probably because of the anticipated impact on US GDP), triggering speculation that the president might try and squeeze an earlier return for the infamous jet.
The best performing stock in the index was Cisco (NYSE: CSCO), powering 2.6% higher after a flood of good feelings about the company’s futuresaw a surge of interest in CSCO.
Caterpillar stock (NYSE: CAT) was the worst-performing stock in the Dow Jones, dipping 1.7%. Given that Caterpillar typically performs well when there are positive trade war headlines, this move is unusual. It hints that investors might no longer be able to enjoy automatic rallies in the Dow 55 every timesomeone in the Trump administration teases progress with China.
This article was edited by. ************************ Josiah Wilmoth**************
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