Dow Jones (DJIA) Buoyant on Policy Expectations
The Dow Jones Industrial Average (INDEXDJX:.DJI) continued its record march as investors looked for new opportunities under President Donald Trump. Sentiments have been bullish since the indication from the Trump administration to invest heavily in building infrastructure, which would lead to higher growth. The probability of a rate hike in December has also gone up.
The Dow Jones Industrial Average (DJIA) shot up by about 218 points Thursday and closed at 18,807.88.
The S&P 500 was marginally up by four points and closed at 2,167.48.
However, the NASDAQ came under pressure as big names in technology dropped. Apple Inc. (NASDAQ:AAPL) shares fell almost three percent, and it was the same case with Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN), which dropped almost two percent each. Concerns about Trump are weighing on these stocks, and the money seems to flow to more promising sectors. The NASDAQ Composite Index fell by 0.8%, or 42 points, to close at 5,208.80.
Bank stocks posted impressive gains on expectations that the Trump administration would loosen financial regulations. Also, higher interest rates would be positive for the sector. JPMorgan Chase & Co. (NYSE:JPM) went up by 4.6%, Wells Fargo & Co (NYSE:WFC) gained almost eight percent, and Goldman Sachs Group Inc (NYSE:GS), and Morgan Stanley (NYSE:MS) were up about four percent each.
Goldman Sachs Group Inc, JPMorgan Chase & Co, and Pfizer Inc. (NYSE:PFE) were the big gainers in the Dow Jones and boosted the DJIA, which broke its prior record closing of 18,636.05 in August.
The market shall see a lot of stock-specific action on Friday, as there were many quarterly results that came out after the closing bell on Thursday.
Walt Disney Co (NYSE:DIS) posted its results, and its shares are likely to take a beating. The media company reported quarterly earnings that did not meet expectations. Moreover, lower revenues from its ESPN channel continue to be a concern.
NVIDIA Corporation’s (NASDAQ:NVDA) strong numbers have boosted the stock in extended trade. The company reported earnings and revenue that beat analyst estimates. The chip-maker also raised its quarterly cash dividend by 22% and issued strong guidance.
The Dow Jones is likely to take a breather now, as many sectors have already rallied. Materials, infrastructure, defense, pharmaceuticals, and financial stocks have gained tremendously on the hopes that Trump’s policies would boost their business. The government’s stance on fiscal stimulus, low tax rates, and change in some financial regulations is leading to the bullish sentiments.
All eyes would now be on how Donald Trump builds his cabinet and his choice for key posts. That would be a major determinant of the direction of the Dow Jones.