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Jan 26, 2017

Dow clambers above 20,000 — marks 2nd-fastest run to a milestone in history

By Mark Decambre


The Dow Jones Industrial Average on Wednesday closed above the psychologically significant threshold of 20,000. Finishing at the level represents a milestone for the blue-chip gauge and highlights a relatively speedy path higher for the stock market in the wake of Donald Trump’s election win in November.

The Dow DJIA, +0.78% is up about 9.5% since Trump’s Nov. 8 election victory, the S&P 500 index SPX, +0.80% has gained nearly 7%, while the Nasdaq Composite Index COMP, +0.99% has advanced roughly 9% during that period.

The equity rally is supported by expectations that Trump will unleash a raft of pro-business policies, including a rollback of regulations, tax cuts, and fiscal spending. The gains for the Dow on Wednesday came after Trump signed executive orders on Tuesday to move forward with the construction of controversial infrastructure projects, Keystone XL and the Dakota Access pipelines, which offered a boost to stocks as it supported expectations that a ramp-up in infrastructure spending—a boon for economic growth—would be one of the centerpieces of his administration.

The Dow’s milestone on Wednesday, marks the second-fastest 1,000-point move in history (42 days), since the 59-session span between late March and early July 2007 (see table below):

Trading sessions between 1000-point milestones Dow’s 1000-point milestone Date of first close above 1000-milestone
24 11,000 5/3/1999
42 20,000 01/25/2017
59 14,000 7/19/2007
85 7,000 2/13/1997
105 8,000 7/16/1997
108 18,000 12/4/2014
127 13,000 4/25/2007
139 16,000 11/21/2013
153 17,000 7/3/2014
182 9,000 4/6/1998
189 5,000 11/21/1995
226 6,000 10/14/1996
246 10,000 3/29/1999
483 19,000 11/22/2016
975 4,000 2/23/1995
1,080 3,000 4/17/1991
1,460 15,000 5/7/2013
1,879 12,000 10/19/2006
3,573 2,000 1/08/1987
21,652 1,000 11/14/1972

 

Goldman Sachs Group GS, +1.53%  has been the biggest contributor the 130-year old gauge’s recent rise, contributing about 30% of its 1,000-point gain since early November.

On Wednesday, Boeing Co.’s BA, +4.24%  more-then 4% rise contributed about 40 points to the Dow’s record run in early trade.

Retrieved from: http://www.marketwatch.com/story/dow-cracks-20000-milestone-intraday-for-the-first-time-2017-01-25