Dow Hits Another Record in Longest-Ever Winning Streak

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U.S. equities inched higher on Monday, pushing the Dow Jones Industrial Average to another record high for the 12th day in a row — something that has never happened before. That’s right: In terms of consistency at all-time highs, this is as good as it’s ever been.

The day’s rise came despite weaker than-expected “hard” economic data releases on durable goods and pending home sales as investors instead focused on Tuesday’s joint Congressional address by President Donald Trump. The speech is expected to talk up stimulus measures such as infrastructure spending, increased defense spending and more.

In the end, the Dow Jones Industrial Average gained 0.1%, the S&P 500 gained 0.1%, the Nasdaq Composite gained 0.3% and the Russell 2000 gained 1%. Treasury bonds were weaker, the dollar was little changed, gold was little changed and oil was stronger (though off its best levels) to rise 0.1%.

Energy stocks led the way with a 0.9% gain while yield-sensitive telecoms and utilities were the laggards, down 1.2% and 0.6%, respectively.

Transocean LTD (NYSE:RIG) gained 3% after positive coverage in Barron’s noting a small uptick in oil prices would allow some of the company’s idled drilling rigs to head back out to sea — leading to a possible 35% or more share rise over the next year or two.

On the downside, Tesla Inc (NASDAQ:TSLA) fell 4.2% after suffering a downgrade from Goldman Sachs on concerns over operation execution on the Model 3, an unproven solar business, and intense cash flow needs. Hanesbrands Inc. (NYSE:HBI) fell 3.4% after being downgraded by Morgan Stanley on a deterioration in sales and cash flow.

On the economic front, headline durable goods orders increased 1.8% in January, beating the 1.6% estimate and ahead of the 0.5% decline in December. Pending home sales dropped 2.8% in January vs. estimates for a 1% gain on tight inventories amid increased buyer traffic. Also, there was a big increase in March Federal Reserve rate hike expectations in the futures market pushing odds to 33% from 26.6% previously.

Technicals continue to deteriorate and sentiment remains at extremes. But that hasn’t mattered. Will Trump’s speech change the dynamic?

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2017/02/dow-hits-another-record-in-longest-ever-winning-streak/.

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