President Trump does not have an Obamacare repeal, tax reform, a Mexican border wall or a massive infrastructure plan, but he does have the Dow Jones Industrial Average. The blue chip index hit yet another record today, cresting yet another milestone, a fact that the president took credit for before it was actually a fact.
Unless you’re obsessively tracking the commander-in-chief’s every Tweet, you may not have even noticed that the Dow hit its third big round number of the year. Perhaps this is because it’s really not all that impressive.
The Dow’s 4.8% march to 22000 from 21000 sets the record for the smallest percentage gain required to move 1,000 points. Simple math shows that, as the Dow runs higher, each 1,000-point rise is less impressive than the last.
Nor did it reach that not-very-impressive level in particularly impressive fashion.
It’s taken 106 trading sessions for the 30-member stock average to muster a 1000-point gain and cross above 22000….
While relatively fast on a historical basis, the record-setting U.S. stock rally has slowed appreciably since March 1, when the blue-chip benchmark first closed above 21000.
It took only 42 days for the Dow to reach 20000 from 19000, then a mere 24 days to hit 21000 — tied for the fastest-ever 1000-point advance.
What’s more, it’s probably not going to get to 23,000 in a hurry either, at least according to the other DJT—not Donald John Trump, but the Dow Jones Transportation Average.
The Dow transports have declined in 10 out of the past 12 trading sessions since hitting an all-time high on July 14. Over that stretch, the measure has fallen 6.1% and ended Tuesday with its lowest closing level since May 24….
To devotees of the so-called Dow Theory of market analysis, transportation stocks are worth watching because their weakness can presage tumbles for the more widely watched Dow industrials.
Dow Industrials Close Above 22000 for First Time [WSJ]
Stocks Are Up 20% Under Donald Trump. Can It Last? [WSJ]
Dow 22000! Sure, But the Bar is Getting Lower [WSJ]
Dow Discord: As DJIA Flirths With 22000, Transports Send an Ominous Signal [WSJ]