Dow Surpasses 19000 For First Time

Asian stocks rose Wednesday after a post-U.S. election rally drove the Dow Jones industrial average to a new high.

It was November 4 when the blue-chip index last closed below 18,000.

Ironically enough, the market rallied sharply the Monday before Election Day after FBI Director James Comey cleared Clinton – an event that many investors interpreted as a sign that Clinton would wind up defeating Trump after all.

And Robert Pavlik, chief market strategist at Boston Private Wealth in NY told the news agency Reuters that the rally had been broad-based across all sectors, which was “a positive sign” for the markets: “Optimism is returning because of the potential that exists in the form of fiscal stimulus, infrastructure spending, and tax cuts, and is renewing confidence on the part of investors and consumers”.

The assault on Dow 19,000 has taken almost two years, or 700 calendar days, since it took out the 18,000 barrier back on December 23, 2014. In January, worries about slowing economic growth in China and its possible spillover effects sent the blue-chip index to its worst-ever five-day start to a year. The firm also raised their guidance for the all-important holiday quarter. “U.S. equity and many other developed markets are going higher, at least in the short-term”.

The increase surprised economists, who had expected existing home sales to drop by 0.9 percent to a rate of 5.42 million in October from the 5.47 million originally reported for the previous month. Twenty-four of the Dow’s 30 components closed higher, led by Verizon Communications Inc.’s (NYSE:VZ) 2.4% gain. Although it eventually went down, it still has an approximate 20 point (0.1%) gain.

“What we’re seeing is a shift in the sectors that are participating” in this rally, said Quincy Krosby, market strategist at Prudential Financial.

The Dow is now up 9.2 percent for the year so far, while the S&P 500 is up 7.8 percent. Japan’s Nikkei 225 Index rose by 0.3 percent, while Hong Kong’s Hang Seng Index jumped by 1.4 percent.

The Dow Jones Industrial Average (DJIA – 19,023.87) hit an intraday best of 19,043.90, before settling up 67.2 points, or 0.4%.

Yesterday, all four major United States indices closed at record highs for the first time since December 1999 as markets rally because of tax cuts, infrastructure spending and less regulation promised by U.S. president-elect, Donald Trump.

Major share markets in Europe also rallied on optimism about Mr Trump’s policies.

OTHER ENERGY TRADING: Wholesale gasoline picked up 1 cent to $1.41 a gallon.

The premium of USA futures for the second month over the front-month, meanwhile, hit 95 cents, its highest since April, as OPEC rhetoric boosts later dated crude contracts.

Oil fell after Iran and Iraq appeared unlikely to accept new Opec production levels.

The yen strengthened against the dollar after the quake as investors sought out safe-haven assets, but gave up most of the gains as it emerged there was no major damage. The Nasdaq composite also closed at all-time highs, rising approximately a third of a percent.

Donald Trump will reportedly name two new Federal Reserve Governors within his first three months as president. The yield on the 10-year Treasury note remained 2.31 percent. That compares with a close of 1.867 percent on Election Day. France’s CAC 40 added 0.4 percent while the DAX in Germany gained 0.3 percent. Britain’s FTSE 100 was 1.1 percent higher at 6,849.