With the hopes of President Donald Trump’s big infrastructure announcement on Tuesday, the stocks in US ended higher on Monday and Dow Jones Industrial Average had a record high closing for the 12th straight session.
Dow’s streak of record highs matches their 12 day run in the year 1987 with UnitedHealth and Boeing being among the biggest boosts on Monday for Dow. S&P 500 also had a record high closing. The energy index, which is up by 0.9 percent, gave the required boost to S&P 500.
Trump, who met the governors at White House, also said that he is seeking a historic increasing in their military spending of about 9%, while he also said that his administration would be quickly moving on the regulatory reforms.
These comments by Trump were ahead of his first address at the Congress joint session Tuesday evening. The investors want more specifics on plans by Trump, as hefty gains have been seen in the market after the election win.
Bucky Hellwig, the senior VP at BB&T Wealth Management situated in Birmingham, Alabama, said that all the things are moving according to Trump’s agenda, but they are hoping to get a much clearer picture tomorrow night after which they would start some buying or selling.
Most investors, including Hellwig, feel that there is most probably an upside rather than downside from this address seeing how the market had reacted in the past recent weeks.
US Defense company shares like Lockheed Martin, General Dynamics, Raytheon, and Boeing rose after Donald Trump promised that he would be boosting spending of Pentagon by $54 billion in his first budget proposal.
UnitedHealth was up by 1.4 percent and Boeing was up by 1.1 percent.
Dow rose 9.2 percent in its 1987 12-day record high close streak compared with a gain of just 3.9 percent in the current record run.
Although there was a rise of 10.8 percent in S&P 500 since the election in November 8, the rally pace has slowed this year as compared to previous years.
A few weeks ago, Trump promised a phenomenal tax announcement, which helped rekindle the rally that took place post-election that drove the main US markets to their record highs.
The stocks of Time Warner ended up by 0.9% after the news came that the US Federal Communications Commission head doesn’t expect to review the plan by AT&T Inc. to acquire Time Warner for $85.4 Billion. AT&T, on the other hand, fell by 1.3%.
S&P had posted one new low and 63 new 52 week highs. NASDAQ Composite had recorded 45 new lows and 143 new highs.