Dow tops 20,000 on revitalized Trump trade, earnings

Wed Jan 25, 2017 4:32pm EST
 
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By Chuck and Mikolajczak

(Reuters) - U.S. stocks climbed on Wednesday and the Dow Jones Industrial Average closed atop the 20,000 mark for the first time as solid earnings and optimism over President Donald Trump's pro-growth initiatives revitalized a post-election rally.

Trump has made several business-friendly decisions since taking office on Friday, including signing executive orders to reduce regulatory burden on domestic manufacturers and clearing the way for the construction of two oil pipelines.

The S&P 500 and the Nasdaq Composite indexes also closed at record highs for a second consecutive session.

The Dow came within a point of the historic mark on Jan. 6, as investors banked on pro-growth policies and tax cuts many expect from the new administration.

However, the index had struggled in recent weeks as investors awaited clarity on the new administration's policies grew cautious.

"It was definitely a milestone that the market has been focused on for really the better part of two months and you were starting to get a little bit of anxiety as to whether it was going to be surmounted or not," said Julian Emanuel, equity strategist at UBS in New York.

"We are particularly encouraged to see financials acting well again because they have been the leadership."

Trump marked the moment with a tweet from the official account of the office: "Great!#Dow20K".   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) as the Dow Jones Industrial Average passes the 20,000 mark shortly after the opening of the trading session in New York, U.S., January 25, 2017. REUTERS/Brendan McDermid