Like it or not, the stock market has been on fire since President elect Donald Trump took office. Since November 9th, the Dow has hit almost 15 record highs. Tuesday was no different, closing at 19,974.62. What the hell is happening? Let me give you the 411.
Why is the DOW so high: This is what's up (and bear with me because I HATE this cliche term). Tuesday was a "perfect storm" of no economic data being reported and lots of volume. Translation: people want to get back into the market, STAT. People have been spooked about the economy and now they aren't. Among the biggest movers, Bank of America Corp., BAC was up almost 2% and Goldman Sachs, Bank of America Corp. GS, was up almost 1.13%. Bank stocks are back, baby.
Want to know what else is up? Telecommunications. Those are stocks like ATT, Verizon, etc. That's up more than 1% which doesn't seem like a lot, but when you look at the sector as a whole, this type of gain in one day is a big deal.
Ah, Geek out!: The Nasdaq, which is an index heavy on bio-tech, pharma and tech companies was up 0.5 percent, and hit a new all-time high that would make Snoop Dog jealous. It closed at 5,489.47 and will probably go even higher before the weekend ends.
Will it last? Hell yes. Q4 (fourth quarter) earnings have been strong across most sectors: Pharma (the stuff you take to feel better and the companies who own it), tech (the things to call your mom on or use to cyber stalk an ex), consumer staples (the stuff you buy at the grocery story) along with Trump bump this should press forward.
Companies earnings reported at the end of the day: Nike and Fed Ex: Guess what analysts like me were saying? They expected Nike to report earnings per share of 43 cents on sales of 8.1 billion (basically, kill it when it comes to merchandise sold). And Fed Ex is expected to post profits of $2.90 per share on revenue of $14.92 billion. What does that jargon mean? People, we did A LOT of online shopping and now it all has to get shipped out!
Need a visual? Was on with Neil Cavuto to talk about #DOW20K. Check it: