Dow ends at record high; indexes post sharp gains for week

Record ID: 79394

  • Title: Dow ends at record high; indexes post sharp gains for week
  • Date: 11th November 2016
  • Summary: BOSTON, MASSACHUSETTS, UNITED STATES (NOVEMBER 11, 2016) (REUTERS) (SOUNDBITE) (English) WUNDERLICH CHIEF MARKET STRATEGIST, ART HOGAN, SAYING: "A lot of what happened in Brexit just happened in 24 hours here. And now we start thinking about what could be positive: some of the regulatory environment, some of the tax changes, some of the things that might be positive for the market, unwinding very crowded trades; undoing the presumption that Hillary Clinton was going to win, and certainly that rotation out of some very crowded interest rate sensitive plays I think were the biggest drivers this week. We've gotten used to surprises, Brexit was a pretty good template for that. This was as big, if not bigger, surprise. The market has just gotten used to that and reacting much quicker."
  • Embargoed: 26th November 2016 21:26
  • Keywords: stocks Art Hogan trading economy J.C. Penney retail Dow markets
  • Location: NEW YORK, NEW YORK, AND BOSTON, MASSACHUSETTS, UNITED STATES
  • City: NEW YORK, NEW YORK, AND BOSTON, MASSACHUSETTS, UNITED STATES
  • Country: USA
  • Topics: Economic Events,Equities Markets
  • Reuters ID: LVA0025804I31
  • Aspect Ratio: 16:9
  • Story Text:The Dow Jones industrial average ended at a record closing high on Friday (November 11), capping off its best week since 2011 after Donald Trump's unexpected victory in the U.S. presidential election.
    Since his triumph on Tuesday (November 8), investors have been betting on Trump's campaign promises to simplify regulation in the health and financial sectors and boost spending on infrastructure.
    The S&P 500 financial index has gained 8 percent in the past three sessions and risen to levels not seen since 2008 during the financial crisis. The financial index has still not recovered to levels seen before the crisis.
    Industrials have surged 5 percent since the election and healthcare is up 3 percent.
    Tempering sentiment among stock investors, Federal Reserve Vice Chairman Stanley Fischer said on Friday economic growth prospects appear strong enough for a gradual hike in interest rates, but the U.S. central bank is monitoring an increase in long-term government borrowing costs.
    The Dow Jones industrial average .DJI climbed 0.21 percent to end the week at 18,847.66 and the Nasdaq Composite .IXIC added 0.54 percent to 5,237.11.
    The S&P 500 declined 0.14 percent to 2,164.45, weighed down by weakness in energy stocks.
    For the week, the Dow rose 5.4 percent, its biggest gain since 2011. The S&P 500's 3.8 percent gain for the week was its strongest in two years.
    The Nasdaq biotechnology index fell 0.64 percent on Friday but ended the week up 10 percent, its best week since 2000.
    The reaction was similar, but faster than what happened with the Brexit vote according to Wunderlich Securities Chief Market Strategist Art Hogan.
    "A lot of what happened in Brexit just happened in 24 hours here. And now we start thinking about what could be positive: some of the regulatory environment, some of the tax changes, some of the things that might be positive for the market, unwinding very crowded trades; undoing the presumption that Hillary Clinton was going to win, and certainly that rotation out of some very crowded interest rate sensitive plays I think were the biggest drivers this week. We've gotten used to surprises, Brexit was a pretty good template for that. This was as big, if not bigger, surprise. The market has just gotten used to that and reacting much quicker," Hogan said.
    Nvidia jumped 30 percent, helping keep the Nasdaq in positive territory after the graphic chip maker reported its biggest quarterly revenue growth in more than six years.
    Walt Disney rose 2.86 percent after its executives promised earnings growth for the next two years. Barclays also upgraded the media company's stock to "equal weight" from "underweight".
    Advancing issues outnumbered declining ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 2.36-to-1 ratio favored advancers.
    The S&P 500 posted 44 new 52-week highs and six new lows; the Nasdaq Composite recorded 350 new highs and 36 new lows.
    About 9.6 billion shares changed hands on U.S. exchanges, far above the 7.5 billion daily average over the last 20 sessions.
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