The Dow Rose 50 Points Because Stocks Are Breaking Records Every Day By Evie Liu Jan. 17, 2020 5:17 pm ET Text size Illustration by Michael George Haddad New Records, Again.U.S. stocks continued to rise on Friday, adding to Thursday’s record closing highs. Investors were encouraged bystrong housing market datain December, as well as China’sbetter-than-expected industrial production. The Treasury Department will issuea new kind of bond product. President Donald Trump plans tonominate two new membersto the Federal Reserve’s Board of Governors.Alphabetstock (GOOGL) rose again a day afterhitting a $1 trillion market cap.Comcaststock (CMCSA) jumped after the company’s NBCUniversal unit said its new streaming service calledPeacock will debut in April. In today’sAfter the Bell, we… review some positive economic data for the month of December; check on the Treasury’s new plan to fund the growing federal deficit; and look forward to the Davos forum next week. Hot December Stocks closed higher on Friday, fueled by positive economic data from both the U.S. and China. TheDow Jones Industrial Averageadded 50.46 points, or 0.17%, to close at 29,348.10. TheS&P 500gained 12.81 points, or 0.39%, to end at 3329.62, and theNasdaq Compositerose 31.81 points, or 0.34%, to close at 9388.94. The housing market is sending out positive signs near the end of 2019.Housing starts surged 16.9% in Decemberfrom a month earlier to a seasonally adjusted annualized rate (SAAR) of 1.608 million, surpassing economists’ expectations by a large margin and hitting the highest level since December 2006. But investors shouldn’t get overly excited. Building permits fell 3.9% from the prior month to a SAAR of 1.416 million, lower than what economists had expected. Permits for new construction are often considered a leading indicator for the housing market, as the number signals how home builders feel about future demand and how much building activities are in the pipeline. So expect more volatility in the coming months. China’s gross domestic product also came in focus on Friday. In the fourth quarter of 2019, the world’s second largest economy grew by a steady 6.0% from a year ago, largely matching economists expectations. For the full year, Chinese GDP expanded 6.1%, falling within the government’s 6.0%-6.5% target range but markingthe weakest level in 29 yearsfollowing the 6.6% growth in 2018. The government expects 2020’s growth to come in around 6%. Still, investors were optimistic as China’s industrial production, fixed-asset investment, as well as retail sales all posted stronger growth in December than consensus expectations, suggesting near-term momentum in the economy. EDITOR'S CHOICE The U.S. Treasury Department said it plans toissue a 20-year nominal coupon bond in the first half of 2020to finance the ballooning federal budget deficit that’s not expected to shrink any time soon. “We seek to finance the government at the least possible cost to taxpayers over time, and we will continue to evaluate other potential new products to meet that goal,” said Treasury Secretary Steven Mnuchin in a statement. The announcement came as no surprise. The Treasury has said before that it was considering several possible new debt products, including ultra-long bonds maturing in 50 or 100 years, as well as floating-rate notes linked to the Secured Overnight Financing Rate. Treasury said itexpects strong demand for the 20-year bond. Next week, the world’s top politicians and business leaders will begathering at the 50th World Economic Forum in Davos, Switzerland. U.S. President Donald Trump, German Chancellor Angela Merkel,Goldman Sachs Group(GS) boss David Solomon and teenage climate activist Greta Thunberg are all scheduled to attend. Investors will be closely watching the meeting to check on business confidence and the state of the global economy. Global leaders will be seeking to address some of the world’s most pressing socio-economic challenges today. The main themes for the 2020 forum include the reduction of long-term debt, global trade disruptions, and the risks of climate change. Thunberg will speak at a seminar, joined by 10 other teenage change-makers to share their thoughts on pressing issues. Write toEvie Liu atevie.liu@barrons.com
%% HOW could that happen?? Most stuff is going up except TSLa+ maybe some sold MUR, MRO,CVX, afraid of G Thunberg?? LOL Or more likely was an oil downtrend...………………………………………………………………………………………………………………...
since 2008 the S&P has been in consistent up trend with only two corrections lasting a few months. this is a strong bull...… some are saying it is overextended. I do not know what that means. These people, in my opinion, are in denial. of course the blo$dy Dow went up...….it has been doing that since 2008. better lose your opinion than your money
this market will be taken up until the crowd realizes that the market is going up. this realization may come at a dow level of 50000 ,60000, or 45000...…... 75000. the market is in strong hands and no one has any stock to sell. so market will go up until buyers come in …….
the market needs sellers at lows and buyers at highs. in my trading i do not seek strategies or indicators or patterns. I seek an answer only to one question: does the market want me to buy or sell? then I do the opposite. who is the market? 85% of all trading volume is done by the big 5. by all means buy all the books you can find. they are very useful.....to keep warm in these cold winters. pour a little petrol and light it......it will burn easier
If Greta had any sense of reality, she would say nothing, and play this song in her place. And then have a steaming hearty cup and reflect upon shit for 10 or so years.
It means it's rising purely on euphoria rather than fundamentals. Consider the following: 1. A decade of near ZIRP creates gobs of free money for the creation of questionable ventures. Many of these are now IPO darlings. 2. The fed has cut rates more and more and each rate cut sees a corresponding rise in the overall market. 3. The CAPE ratio is off the charts indicating deep overvaluation of the market. 4. My IPO Bullshit Radar (TM) has been ringing non-stop since every tech company is having an IPO. Capitalize on the lunacy in the market and get people to buy into your terrible idea and unprofitable company so you can sell your shares after the lock up. Dot com boom anyone? A fundamental rise is usually persistent. A market with stellar manufacturing, jobs, and processes will necessarily create an economy that has an upward trajectory. A euphoric rise will be met with a catastrophic fall. When? Hard to say. Judging by 2018 a global trade debacle could be what is needed. Hyperinflation due to ZIRP could cause it. A bad election result could cause it. In 20 years when the full effect of SLABS is felt throughout the economy a weak year brought on by lack of purchasing power in normally purchase heavy age groups (late 30s - 40s) could cause it. I don't think anyone wants to go contrarian in a market that is borderline psychotic at this point. But it does seem like a nice time to begin cutting back exposure and harvesting losses ahead of the 2020 election...
UOTE="gaussian, post: 4997914, member: 507491"]t means it's rising purely on euphoria[/QUOTE] where is the euphoria all the stock is in hands of big 5. only shorts are piling in...…..this is going to blast off you cut down now you reenter after 10000 points
where is the euphoria all the stock is in hands of big 5. only shorts are piling in...…..this is going to blast off you cut down now you reenter after 10000 points[/QUOTE] padu is spot on here. The dumb money is empty handed here. Euphoria means your hair dresser and taxi driver giving stock tips.