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The Dow just posted its best winning streak since the 1980s. It keeps going higher
The Dow on Wednesday rose for a 13th straight day, matching its longest winning streak since 1987. If it closes higher Thursday, it would be a streak not seen since 1897.
That momentum hasn’t been seen in the broader S&P 500 and Nasdaq Composite indexes, however. Both are up just 3% since the Dow’s streak began. The S&P 500 has fallen twice in that time, while the Nasdaq has posted three losing sessions.
Recession fears are easing in large part due to data showing inflation is coming down. In turn, traders are betting the Fed will stop hiking interest rates, moves that have been restraining the economy’s potential. Federal Reserve Chief Jerome Powell hinted Wednesday after the central bank hiked rates that they could hold steady at its next meeting in September.
The consumer price index, a widely used measure of inflation that tracks prices on goods ranging from food to electronics, rose just 3% on a year-over-year basis. That was less than economists expected.
The producer price index, climbed just 0.1% in June month over month, also less than forecast.
Employment data points to a resilient economy.
Many of the stocks composing the Dow are levered to an improving economy (think American Express, Chevron, Goldman Sachs, and 3M)
Goldman Sachs, the stock with the second-highest price in the Dow, is up more than 10% this month. UnitedHealth, which has the highest price, is up more than 5.7% in that time.
The Dow just posted its best winning streak since the 1980s. It keeps going higher
The Dow on Wednesday rose for a 13th straight day, matching its longest winning streak since 1987. If it closes higher Thursday, it would be a streak not seen since 1897.
That momentum hasn’t been seen in the broader S&P 500 and Nasdaq Composite indexes, however. Both are up just 3% since the Dow’s streak began. The S&P 500 has fallen twice in that time, while the Nasdaq has posted three losing sessions.
Recession fears are easing in large part due to data showing inflation is coming down. In turn, traders are betting the Fed will stop hiking interest rates, moves that have been restraining the economy’s potential. Federal Reserve Chief Jerome Powell hinted Wednesday after the central bank hiked rates that they could hold steady at its next meeting in September.
The consumer price index, a widely used measure of inflation that tracks prices on goods ranging from food to electronics, rose just 3% on a year-over-year basis. That was less than economists expected.
The producer price index, climbed just 0.1% in June month over month, also less than forecast.
Employment data points to a resilient economy.
Many of the stocks composing the Dow are levered to an improving economy (think American Express, Chevron, Goldman Sachs, and 3M)
Goldman Sachs, the stock with the second-highest price in the Dow, is up more than 10% this month. UnitedHealth, which has the highest price, is up more than 5.7% in that time.
It's better to be out wishing to be in... than to be in wishing to be out!
