Friday was another great day on Wall Street even though the major indices didn’t finish at the highs of the session (there were record closes all around):
- NASDAQ: 79th since Election Day and 65th under President Trump
- S&P 500: 69th since Election Day and 60th under President Trump
- Dow Jones Industrial Average: 86 record since Election Day and 69th under President Trump
The Dow has now matched 1995 with the most record closes in a calendar year, and I’m sure that record will be smashed. There was strength across the board with Costco (COST) leading the charge as consumer staples enjoyed the strongest sector gains.
The Russell 2000 Index was the best performing sector, suggesting that the Street is buying into the notion this tax bill would have a positive impact on the domestic economy.
I think it’s interesting this market has many of the characteristics of 1995, which is the year Alan Greenspan coined the phrase “Irrational exuberance” that marked the top of the market five years too soon. Right now, equity valuations by most measures aren’t near levels that typically trigger crashes.
The renewed optimism is just getting started, and shouldn’t die overnight because of political anxieties. New highs beget new highs; this time, these milestones are happening in accordance with good to great news. There are real building blocks for a real rally.
Speaking of exuberance, after the close, TD Ameritrade (AMTD) announced it will offer its clients access to the Chicago Board Options Exchange (CBOE) Bitcoin (BTC) futures contract as of today.
Join the conversation as a VIP Member