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Home>UPDATE: Dow flirting with 23,000 is a sign of the stock market's velocity

UPDATE: Dow flirting with 23,000 is a sign of the stock market's velocity

UPDATE: Dow flirting with 23,000 is a sign of the stock market's velocity

10/05/2017

By Mark DeCambre, MarketWatch

Dow has registered 44 record closes--its most all-time high finishes in a single year since 2013

A resurgence in the so-called Trump trade has investors once again contemplating a fresh milestone for the Dow Jones Industrial Average.

This time the most well known and oldest U.S. equity benchmark is set to hit 23,000 for the first time ever, notching its fourth straight 1,000 point climb over the past 12 months. That would be the largest number of such 1,000 point moves within a calendar year in the benchmark's 120-year history, according to WSJ Market Data Group.

The Dow remains around 325 points away from the next milestone, but if it manages to clear it within the next 14 trading sessions, the blue-chip average would notch its third fastest climb to 1,000-point milestone since mid July (see table below).

To be sure, the higher the DJIA rises, the smaller each 1,000-point move is in percentage terms, but the climb to all-time highs has captured public attention, even if some market strategists and bears are concerned that valuations have gotten too lofty, too fast.

 Dow milestones 1st close above that level Dow final close No. of trading days to milestone (ranking) 23,000 ? N/A ? 22,000 Aug. 2, 2017 22,016.24 107 21,000 March 1, 2017 21,115.55 24 (1) 20,000 Jan. 25, 2017 20,068.51 42 (2) 19,000 Nov. 22, 2016 19,023.87 483 18,000 Dec. 23, 2014 18,024.17 120 17,000 July 3, 2014 17,068.26 153 16,000 Nov. 21, 2013 16,009.99 139 15,000 May 7, 2013 15,056.20 1,460 14,000 July 19, 2007 14,000.41 59 (3) 13,000 March 25, 2007 13,089.89 127 12,000 Oct. 19, 2006 12,011.73 1,879 11,000 May 3, 1999 11,014.69 24 (1) 10,000 March 29, 1999 10,006.78 246 9,000 April 6, 1998 9.033.23 182 8,000 July 16, 1997 8,038.88 105 7,000 Feb. 13, 1997 7,022.44 85 6,000 Oct. 14, 1996 6,010 226 5,000 Nov. 21, 1995 5,023.55 189 4,000 Feb. 23, 1995 4,003.33 975 3,000 March 17, 1991 3,004.46 1,080 2,000 Jan. 8, 1987 2,002.25 3,573 1,000 Nov. 14, 1972 1,003.16 21,652 Source: WSJ Market Data Group 

So, why is the market headed higher?

Much of the recent gain has been attributed at least in part to optimism around President Donald Trump's tax plan. That enthusiasm centers on the belief that he will implement Wall Street-boosting measures, like deregulation and tax cuts that will pave the way for further climbs in risk assets.

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