Dow Jones (DJIA) Registers Historic Week on Trump Optimism

Dow JonesDow Jones Industrial Average (DJIA) Posts Best Week in Five Years

It was a historic week for the Dow Jones Industrial Average (DJIA) as it registered its best show in five years. The investors looked closely at how President-elect Donald Trump’s policies would buoy economic growth and favor multiple sectors. The DJIA gained for the fifth straight session in the election week that was full of surprises and turnarounds.

The DJIA gained about 40 points, to close at 18,847.66.

Walt Disney Co (NYSE:DIS) was the biggest gainer in the Dow. DIS stock shot up by about three percent as CEO Bob Iger allayed the fears of investors by showing confidence in ESPN’s future growth. The falling subscriber numbers of the Disney-owned ESPN have been a major concern, but the CEO explained how the company is transforming, and he predicted earnings growth for the next two years.

E I Du Pont De Nemours And Co (NYSE:DD) fell about 2.5% and Merck & Co., Inc. (NYSE:MRK) dropped by 1.5%. Pfizer Inc. (NYSE:PFE) shares went down by about 2.7% and were the top losers in the DJIA.  

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Goldman Sachs Group Inc (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), and International Business Machines Corp. (NYSE:IBM) have been big contributors to the Dow Jones rally in the week.

The S&P 500 ended mostly flat, down about three points, and closed at 2,164.45.

Technology stocks rebounded and lifted the NASDAQ, which gained 28 points and closed at 5,237.11. Shares of Apple Inc. (NASDAQ:AAPL) ended marginally in the green. However, Amazon.com, Inc. (NASDAQ:AMZN), Facebook Inc (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) continued to drop further.

As Trump is getting his team together, investors are moving from sectors like technology into financial and energy.  Defense, industrial, and pharmaceutical stocks have already gained on the back of positive expectations.

But the markets are likely to take a pause going forward, as investors look for further direction. The DJIA will look forward to the Federal Reserve’s actions. Oil prices may play spoilsport and drag energy stocks down. Also expected is retail sales data, together with the results of Home Depot Inc (NYSE:HD), Target Corporation (NYSE:TGT), and Wal-Mart Stores, Inc. (NYSE:WMT).

Much attention will be on Trump’s cabinet selection this week, as well as his policy announcements. Trump has already named Reince Priebus as his Chief of Staff. Reports have come in that tariffs have been proposed for companies outsourcing their production, and that illegal immigrants have been asked to leave. Also, recent reports in the media suggest that Chinese President Xi Jinping has told Donald Trump that cooperation is the only way forward. The future direction of the DJIA will be determined by these events and the markets have a lot to look forward to this week.