The market was feeling like Taylor Swift this morning, hitting “22”,000, maybe it will celebrate tonight by dressing up like a hipster? The Dow toppled its highest mark ever and the Trump administration is taking credit for the recent hike even though they claimed that the market was in a bubble when it was surging under Obama. Let's take a quick step back and explain how the Dow Jones broke another record so quickly.
Dow Jones Recap
First, let's remember that the Dow Jones only consists of 30 stocks and is a price weighted index, don’t know that? well, click here to read more about what the Dow Jones is and how it is like an Instagram model.
The job market has been strong and continues to be strong, as unemployment levels are around 4.3%, the lowest that it has been since 2001. This helped propel the stock market because it is seen as a positive outlook on economics, the more jobs being created and less unemployment’s, means more people are prospering; Therefore the more people prosper the more people spend which in turn puts good earning back in companies that are on the market.
Boeing is one of the stocks that are in the Dow Jones and has seen remarkable gains since March 1st, shooting the Dow Jones upwards of 380 points! Followed by the golden arches of McDonalds and United Health care, which contributed 171 and 166 points respectively. Remember, because of weighted average these stocks help determine the price of the Dow Jones
The Apple on Top
Finally, Apple released positive earnings today that shattered expectation and rose upwards of 5% today, this was the final push or as we like to say the apple on top of a great 107 days since the Dow Jones hit 21,000.
Overall the economy has remained strong due to the growth in jobs and having more than 72% of popular companies on the market make or beat their earnings. We here at Orca continue to ride this wave and are a look out for any changes that may happen, but for now, we dressed up like hipsters, because I don’t know about you but we are feeling “22”,000.