The Dow notched up minor gains over the week, before ultimately declining on concerns related to Trump’s tax proposals. Mergers and acquisitions related reports helped the index notch up fresh records even though movements continued to occur within a tight band. Ultimately, prospects of a delay in the implementation of tax cuts proposals dragged the index downward toward the end of the week.
Last Week’s Performance
The index gained 0.1% last Friday on the back of strong earnings performance from Apple Inc. (AAPL – Free Report) Better-than-expected earnings and favorable quarterly outlook from the tech giant led all the three key U.S. indexes to new record highs despite mixed jobs data. Additionally, the ISM services index hit its highest level in more than 12 years, which in turn boosted the broader markets.
The index gained 0.5% over last week. Benchmarks closed in positive territory for the week after the Fed chose not to hike rates this month. Moreover, the Fed offered a positive view about the U.S. economy and said that it has been improving at a ‘solid rate.’
Also, House Republicans finally revealed a detailed framework for the new tax policy, which also boosted sentiments. Additionally, upbeat earnings results also led the markets higher.
The Dow This Week
The index inched up by 0.04% on Monday following news of a possible merger between Broadcom Limited (AVGO – Free Report) and Qualcomm Incorporated (QCOM- Free Report) . This is the 26th trading day when all-time high was achieved by all the three key U.S. indexes in 2017, marking the highest number of record highs achieved in a single year. Additionally, optimism over President Trump’s tax cut plans and upbeat third quarter earnings also boosted investor sentiment.
The index once gained 0.04% on Tuesday to finish at a fresh record high. Weak profit forecasts from key stocks pulled the consumer discretionary sector downward, which in turn weighed on the broader markets. Also, decline in bond yields weighed on financials and concerns over the timing and implementation of Trump’s tax cut plans resulted in a small-cap stock selloff.
