Investing.com – The Dow Jones Industrial has reached the 20,000 points for the first time this Wednesday, with a rise of 1,000 points between levels psychological of three zeros, which has led him to achieve two months and three days.
The levels of points that end in three zeros tend to grab the attention of investors, and the media, even though they may have no importance from the point of view of technical analysis.
The index, in which are the principal values of the united States, it reached 19,000 points on November 22, 2016, with an increase from 18,000 points to reach the 23 of December of 2014, or exactly one year, 10 months, and 30 days later.
The Dow has risen now to approximately 5.3% from which exceeded the level of 19,000, but about a 211% since the march 9, 2009 the market collapse up to 6.440,08 points.
In terms of calendar days, the rise of 19,000 to 20,000 occupies the second place in the list of the fastest movements between the milestones of triple zero.
The progress during the tech bubble of 1999, 10,000 to 11,000 points, remains in first place, having been made in only a month and four days, while the passage of the 13,000 to 14,000 in 2007 placed back in third place, as the rise lasted for two months and 24 days.
does The "rebound Trump" or the increase of the profits?
Wall Street began to skyrocket when Donald Trump surprised the markets with an unexpected victory in the presidential elections of the united States. Market players speculated about the fiscal policies implemented by the new president-elect, including infrastructure spending and tax cuts, would spur economic growth, leading to profits for the companies and giving rise to what many analysts call the “rebound Trump”.
In fact, the Dow has risen about 9.1% from the November 8, election day, closing near 18.332,74 points, despite the fact that the Federal Reserve (Fed) hiked the interest rates on the 14th of December for only the second time and raise their expectations in terms of the number of raises in 2017 up to three, in front of the two that augurara before.
Trump is attributed the merit of the rise of the 26th of December, saying on his Twitter account that “the world was sad before I would win ‒ there was no hope.”
however, some analysts have argued that the surge had little to do with the victory of Trump, achacándolo in place to increase the profits of the companies.
Maximilian Kunkel, strategist cross-asset UBS, noted that the earnings growth in the third quarter was 4%, exceeding market expectations that pointed to a decline of 1% year-on-year.
“it Was the first time since the mid of 2015 that the benefits really rose,” he said in an interview to CNBC last month, adding that the increase in profits will accelerate in 2017.
“That’s really what’s driving the markets”, concluded Kunkel.
The analysts believe that the results of the fourth quarter indicate an increase of 6.1% from a year ago. Everything points to the results of the companies in the S&P financial sector will show the greatest increases, with a revenue increase of 15.7%.
The 88 companies file their fourth-quarter results on Tuesday, the 70% has exceeded expectations in terms of the benefits, and 56% had exceeded sales forecasts, according to the company’s analysis of trends in The Earnings Scout.
In any case, the actions of the united States had made a pause in January, and the S&P 500 recorded movements of less than 1% to close at all the conferences this year. In fact, the greatest movement was a rise of 0,85%, the 3 of January, during the first day of trading of 2017.
If the S&P does not re-register a movement of 1% this Wednesday will be the 27th consecutive days, its longest winning streak in the last 22 years, according to Ryan Detrick, strategist commercial for LPL Financial.
The experts had commented this month that the investors were kept waiting to see what fiscal policies it decided to implement Trump at the end.
Tuesday saw a return to activity on the trading floors since the president signed executive orders that facilitated the processing of permits to decrease the regulatory burden on domestic producers and gave the green light to the resumption of the activity of the oil pipelines Keystone XL and Dakota Access.
In any case, the most likely is that the future course of actions of the united States determined by a combination of the actions of Trump and its effect on the balance sheets of the companies. Whatever fiscal policies that the new administration decides to propose and promote in the Congress, without doubt will benefit some companies while others may be zarandeadas, depending on the measures adopted and the sectors involved.
At 9:34 am, eastern time (15:34 in Spain), the rose 0.51 per cent to 20,015.59 points, just below 20,033.77, all-time highs on an intraday basis.
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