Stocks closed slightly higher Monday with technology and industrial companies rising but the Dow Jones industrial average once again was unable to breach the 20,000 mark.
The Dow Jones index, which closed last week at 19,843.41, has made several attempts to break through the 20,000 mark but each time it’s fallen just short. The index has rallied strongly since the election of Donald Trump as the next U.S. president amid hopes that the incoming administration will be kind to business and back more spending on such things as infrastructure.
“I would be surprised if we’re not trading above 20,000 before the end of the year,” said Craig Erlam, senior market analyst at OANDA. “The Trump rally has stalled a little in recent sessions but so far, I’m seeing few signs that we’re going to see the year out on a negative note.”
The Dow rose 39.65 points, or 0.2%, to close at 19,883.06. The Standard & Poor’s 500 index gained 0.2% to 2262.53 and the Nasdaq composite added 0.4% to 5457.44.
Bond prices rose. The yield on the 10-year Treasury note slid to 2.53% from 2.60% late Friday. That sent interest rates lower and affects the profits banks make from mortgages and other loans. Bank of America shed 1.1% and MetLife sank 2%.
Government bond yields have climbed recently. Last week the yield on the 10-year note rose to its highest level in more than two years.
In Europe, the FTSE 100 index of leading British shares was up 0.1% while Germany’s DAX gained 0.2%. The CAC-40 in France was 0.2% lower.
Stocks lost steam Friday as the Dow failed in another attempt at topping the 20,000 mark for the first time ever.
The Dow Jones industrial average lost less than 0.1%, down 8 points to finish at 19,843.41. The S&P 500 fell 0.2%, while the Nasdaq composite shed 0.4%.
After an initial jolt from the Fed’s interest rate hike decision this week, markets adjusted to the prospect of more increases that policymakers signaled were in store as they move to “normalize” interest rates. The Fed raised rates for only the second time in a decade and hinted three more hikes are on the way in 2017, rattling markets used to ultralow borrowing costs that have fueled a multiyear stock boom. The Fed’s move now shifts the focus from central bank policy to economic growth as the driver of stock market performance.
Bond yields gave up some of their big gains from the last few days.The yield on the 10-year Treasury fell to 2.58% from 2.60% late Thursday, putting at least a temporary halt to its strong rally since last month’s presidential election.
The waiting game for Dow 20,000 continues — even after the Fed’s Wednesday announcement of a rate hike — as the blue chip stock gauge failed to hit the market milestone after flirting with history in the previous trading session.
Stocks treaded water till the Fed’s announcement of a quarter-point hike, which came two hours before the 4 p.m. ET market close. The major indexes seesawed, climbing and then losing steam.
The Dow slid 0.6% — down 119 points. It’s about 207 shy of that never-reached 20,000 milestone.
Down by a larger amount was the S&P 500, which shed 0.8%. The Nasdaq composite lost 0.5%.
The Dow, arguably the world’s best-known stock market barometer that’s been around since 1896 and which is made up of 30 of America’s best-known blue chip companies, climbed as high as 19,953.75 Tuesday before paring some gains and closing up 114.78 points to 19,911.21.
The trek to Dow 20,000 continues.
It’s taken nearly 120 years to get close to this point as the Dow Jones industrial average came within 47 points Tuesday of its biggest milestone yet.
The race to 20,000 for the blue chip stock index, which began way back in 1896, picked up speed after Election Day on hopes that president-elect Donald Trump’s policies will stoke growth.
At its afternoon intraday record peak, the Dow was up more than 155 points, or 0.8%, to a high of 19,953.75, before pulling back slightly to close up 114.78 points, or 0.6%, to close at 19,911.21.
Since Election Day the Dow has surged about 9%, from around 18,300 . The Dow made history back during the Internet stock boom in 1999 when it first crossed the 10,000 mark.
Since then, the Dow has suffered through two brutal bear markets, the first in 2000-2002 following the dot-com stock crash and then 2007-2009 during the Great Recession.
Stocks closed mixed Monday as the Dow hit a new all-time high and as oil prices jumped after several non-OPEC countries agreed to join the cartel in cutting output and as investors focused on interest rates. The S&P 500 and Nasdaq snapped 6-day winning streaks and retreated from record highs.
Investors were also focusing on interest rates as Federal Reserve policymakers meet this week and most economists expect the Fed to announce a rate hike at the conclusion of the 2-day meeting on Wednesday.
The Dow Jones industrial average rose 39.58 points, or 0.2%, to a record close of 19,796.43, according to preliminary calculations. The Standard & Poor’s 500 index fell 0.1% to 2256.96, after rising in early trading to set a new intraday record. The Nasdaq composite index dropped fell 0.6% to 5412.54.
Energy stocks got a boost as the price of U.S. benchmark crude oil jumped 2.6% to $52.83 a barrel as oil-producing countries outside of OPEC agreed to reduce production by 558,000 barrels per day. That comes after OPEC countries agreed in November to reduce production by 1.2 million barrels per day.
Not even the threat of an interest rate hike next week from the Federal Reserve could derail the U.S. stock market’s record-setting run as Wall Street posted its best five days since the presidential election and doubled down on its bet of better times ahead under new political leadership at the White House.
The bullish vibe on Wall Street is best illustrated by the blue chip Dow Jones industrial average, which surged nearly 600 points, or 3.1%, on its way to posting a fresh all-time high on each trading day of the just-ended week.
The Dow, which is up 13.4% this year, is now within 243 points of Dow 20,000, a milestone few imagined was possible at the bottom of the bear market back on March 9, 2009, when the Dow fell to 6,547.05.
The Standard & Poor’s 500 index, Nasdaq composite and small-stock Russell 2000 also finished the week at record levels.
The big gains came even though Wall Street is pricing in a nearly 100% chance of an interest rate hike from the Federal Reserve Wednesday, its final meeting of the year. Wall Street is expecting a quarter of a percentage point rise by the Fed, which would mark the U.S. central bank’s first rate hike of 2016, despite forecasts at the start of the year for three or four hikes.
Following the Fed’s meeting Wednesday, Wall Street’s attention will turn to its policy statement, its updated projections for the economy, inflation and future rate hikes, as well as Fed chair Janet Yellen’s comments during a press conference with reporters.
The big run-up in stock prices, up to this point, has been based mainly on hopes that Trump’s policies will boost economic growth as well as corporate sales and profits
Stocks gained Thursday, the Nasdaq joining the Dow, S&P 500 and Russell 2000 in record territory as all four indexes hit new all-time closing highs.
After a quiet start, major U.S. stock indexes jumped in afternoon trading as the market built on a surge the previous day. Banks and basic materials companies made the biggest gains, and technology companies also climbed. Defense contractors and other industrial companies took losses.
The small-stock Russell 2000 surged 1.5%.
Meanwhile the Dow Jones industrial average ended up about 65 points, or 0.3%. The Standard & Poor’s 500 index rose 0.2%. The Nasdaq composite jumped 0.4%.
These are the new closing highs for the four indexes:
► Dow: 19,614.81
► S&P 500: 2246.19
► Nasdaq: 5417.36
► Russell 2000: 1386.37
U.S. government bond prices fell, sending yields higher. The yield on the 10-year Treasury note rose to 2.40% from 2.34%. That drove banks stocks up since higher interest rates will allow banks to charge more for lending money. Goldman Sachs (GS), which has surged 32% since the presidential election and is trading at a nine-year high, was up 2.5%, and Bank of America (BAC) picked up 1.7%.
European stocks climbed for the second day in a row. Germany’s DAX index was up 1.8% and France’s CA 40 index gained 0.9%. London’s FTSE 100 rose 0.4%.
Stocks rallied Wednesday and continued their record-setting run as the Dow soared almost 300 points and leaped to another new record closing high. The rally was broad-based as the S&P 500, Dow transports and Russell 2000 also set new record closes.
The Dow Jones industrial average jumped 297.84 points, or 1.6%, to an all-time closing high of 19,549.62. The Standard & Poor’s 500 index jumped 1.3% to a record close of 2241.35. The small-stock Russell 2000 index gained 0.9% to an all-time high of 1364.51.
The tech-heavy Nasdaq composite index rose 1.1% to 5393.76, about 5 points shy of its record close.
Stocks moved steadily higher throughout the day after a mixed open. Phone and real estate companies made the largest gains, but the rally moved into high gear in the afternoon, as airlines, railroads and trucking companies soared.
Investors took the rally in transportation stocks as a sign of optimism about economic growth. Technology and consumer-focused companies also jumped. Biotech drug companies took steep losses after President-elect Donald Trump said he wants to reduce drug prices.
U.S. government bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 2.34% from 2.39%. Bond yields have risen sharply since the summer but have slipped in the last few days.
Oil prices fell back below $50 a barrel as benchmark U.S. crude dropped 2.3% to $49.77 a barrel in New York.
The Dow and Russell 2000 hit new closing highs Tuesday as stock indexes turned positive in the afternoon and stayed there, helped by shares of telecommunications companies such as Verizon, Sprint and AT&T.
The Dow Jones industrial average gained 35 points, or 0.2%. That’s up about 36 points to 19,251.78, its new all-time closing high.
The Russell 2000 soared 1.1%, up 15 points. Its new closing high: 1,352.67.
Also gaining were the S&P 500 and the Nasdaq composite, ending up 0.3% and 0.5%, respectively.
Sprint and T-Mobile shares climbed sharply after President-elect Donald Trump said in a tweet that Japanese company Softbank, which owns the majority of Sprint, was going to invest $50 billion in the U.S. to create 50,000 jobs over the next four years. However, it’s not clear if Softbank’s announcement is new.
U.S. government bond prices rose slightly. The yield on the 10-year Treasury note fell to 2.39% from 2.40% late Monday. In foreign exchange trading, the dollar rose to 114.06 yen from 113.75 yen. The euro fell to $1.0718 from $1.0770.
Italy’s stock market jumped 4.2%, a day after slipping in the wake of the failure of a constitutional referendum that forced the resignation of that country’s premier. France’s CAC 40 added 1.3%, Britain’s FTSE 100 was up 0.5% and Germany’s DAX rose 0.8%.
U.S. stocks rose Monday as investors sent the Dow Jones industrial average to another record high. Banks put up some of the biggest gains, as did technology companies, which have been mostly left out of a post-election rally. Energy companies were higher as the price of oil reached its highest level since July 2015. Small-company stocks continued to outpace the rest of the market.
The Dow Jones industrial average rose 45.82, or 0.2%, to close at a record 19,216.31. The Standard & Poor’s 500 index gained 0.6% to 2204.71 and the Nasdaq composite index rose 1% to 5308.89.
Small-company stocks again outpaced the rest of the market as the Russell 2000 jumped 1.8%. Thanks to a big rally in November, the Russell is up 17% this year, or more than twice as much as the S&P 500. Smaller companies, which are more domestically focused than large multinationals, could stand to benefit more than larger companies from a pickup in U.S. growth.
Oil prices rose for the fourth day in a row. The gains Monday were modest, but oil prices haven’t been this high since July 2015. Benchmark U.S. oil rose 11 cents to $51.79 per barrel in New York. Brent crude, used to price international oils, gained 48 cents to $54.94 a barrel in London. The price of oil has surged since OPEC countries finalized a deal that will trim oil production starting in January.