[Chart courtesy of MarketWatch.com]
- Moving the Markets
Treading water below the unchanged line was the theme of the day as weakening upward momentum held the major indexes in check. Despite the usual afternoon ramp, only the Dow managed to eke out a gain to notch its sixth straight record high close.
It was a mixed bag with declining energy stocks dragging on the indexes while, at the same time, a pause was in order to digest the gains of the Trump rally. With the 4th quarter earnings season almost being in the rear view mirror, today’s focus was again on Trump’s lofty promises of cutting corporate taxes and reducing regulations.
There was a lot of hope, enthusiasm and excitement powering this rally, but we’re now getting closer to a point where Wall Street wants to see more concrete results, in other words, the theme has shifted to either “put up” or “shut up.”
On the earnings side, the big assist that helped the Dow close in the green, came from Cisco Systems (+2.38%) after its quarterly results were posted late Wednesday. We now have to wait and see what the next driver will be to keep the recent upward momentum intact.