Dow Jones Record Streak: A 36-Year Record Smashed
In a remarkable showing of resilience, the Dow Jones Industrial Average (DJIA) has marked its 13th consecutive winning session, etching its longest bullish streak since 1987, a record held for 36 years. Amid a whirlwind of volatility, the Dow Jones notched an increment of 0.25%, translating to a boost of 85 points, before the closing bell on July 26, 2023.
This unparalleled streak has not been witnessed in the 30 components of the Dow since the historical 1987 bull run. Notwithstanding an almost relinquished intraday gain of 170 points, the bullish trend managed to sustain the green momentum until the end of the session.
Behind this green rally were factors such as the Federal Reserve’s rate-hike decision, which might be the last needed to hit the 2% target rate, according to the Fed Chair, Jerome Powell. Market participants were also keeping an eagle eye on corporate earnings reports, feeding into the bull rally.
Remember: The performance of the Dow Jones can serve as a barometer of the overall market sentiment and economic conditions.
Session Standouts
Despite the Nasdaq falling by 0.2% and the S&P 500 dipping by 0.15%, the Dow outperformed both, cementing its position as the top performer of the session.
Shares of Boeing (BA), despite a quarterly loss, skyrocketed by 8%. This surprising rise was fueled by an increase in aircraft deliveries and a $2.6 billion free cash flow in Q2, exceeding analysts’ forecasts.
3M (MMM), following its earnings beat, added to the momentum with a 2.5% rise, making it a second consecutive day of gains. Coca-Cola (KO), backed by a double-digit surge in earnings, lifted its 2023 outlook for revenue and profit, pushing its shares up by 0.9%. Intel (INTC) and Procter & Gamble (PG) also experienced slight rises and remained flat respectively, ahead of their upcoming earnings release.
Tip: Keep an eye on the standout companies in these sessions. Their performances could influence their sectors and present investment opportunities.
Profit-Takers
Despite beating its quarterly estimates on both revenue and profit, Microsoft (MSFT) suffered a 4% drop in shares. This was mainly attributed to its forward guidance falling short of expectations and softness in its cloud and PC business. Since hitting an all-time high of $366.78 on July 18, Microsoft has pulled back by over 8%.
Among others who fell into the red were Caterpillar (CAT), Cisco Systems (CSCO), Salesforce (CRM), Honeywell (HON), and McDonald's (MCD), with shares down by 1.6%, 1%, 1%, 0.9%, and 0.3% respectively, ahead of their earnings reports on Thursday.
Important: Companies like Microsoft may experience a share drop even after hitting an all-time high. Price corrections are a normal part of the market dynamics.
Frequently Asked Questions
What's driving the Dow's record-breaking streak?
Investor optimism, buoyed by corporate earnings reports and the Federal Reserve's decision to hike interest rates, has driven the Dow's remarkable winning streak.
How can traders leverage this news?
Traders can capitalize on this news by keeping a close eye on the companies with positive momentum and considering them for investment. Additionally, monitoring the upcoming earnings reports of those companies experiencing falls can reveal potential opportunities.
How does the Dow's performance influence other securities?
A robust Dow can foster investor confidence, influencing the broader market and individual securities. However, it's crucial to assess each security on its own merits, considering individual company performance and sector trends.
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Gabriel Kowalski
Gabriel Kowalski is an accomplished trader, financial strategist, and an engaging writer. With over 15 years of experience in forex trading, technical analysis, and the broader financial sector, Gabriel's knowledge is both extensive and versatile. He's known for his astute analyses of market trends and his ability to explain complex financial concepts in an approachable way. His areas of specialization include forex trading, market news, and economic trends. Gabriel's primary aim at Investora is to empower readers with the knowledge they need to make informed financial decisions. When he isn't dissecting financial markets, Gabriel enjoys hiking and photography.
