- On Friday, the Dow hit 44,000 for the first time in history.
- Stocks continue their near-term uptrend to end the trading week.
- The results of the UoM sentiment survey were much better than expected.
The Dow Jones Industrial Average (DJIA) rose to novel all-time highs on Friday, hitting 44,000, as stocks rallied sharply to end a record week. The Dow had its best week since October 2023, rising nearly 5% and posting record rates three days in a row.
The University of Michigan (UoM) Consumer Sentiment Index rose to 73.0 in November, surpassing the expected score of 71.0 and climbing further above October’s 70.5, as surveyed consumers show cautious optimism about the overall health of the U.S. economy. On the other hand, five-year consumer inflation expectations also increased once again, reaching 3.1% compared to the previous print of 3.0%.
Former President Donald Trump’s sweeping election victory helped send stocks soaring this week, while another 25 basis point rate cut by the Federal Reserve (Fed) kept the gas pedal to the floor. Friday’s surge in consumer prospects surveys is only prompting stock investors to hit the buy button.
Dow Jones News
More than two-thirds of the Dow Jones index was higher on Friday, with most stocks ending the week higher than they started. McDonald’s ( MCD ), Unitedhealth ( UNH ) and Procter & Gamble ( PG ) finished Friday up around 2%, with MCD topping $300 per share for the first time in several weeks.
On the lower end, Caterpillar (CAT) retreated about 3.5%, falling below $395 per share and extending an earnings decline after the company’s revenue fell 4% year-over-year. Caterpillar said the decline was due to “lower equipment sales to end users,” adding that “changes in dealer inventory had an adverse impact on sales volume.”
Dow Jones Price Forecast
With the Dow remaining stubbornly in record high territory, a technical explanation for short-term momentum seems frustratingly impossible. All indications are that the DJIA is too deeply stuck in overbought territory to consider a novel bid, but the continued upward momentum has left the chart completely missing technical tiny entry points.
“Winners Win” is a take on the Dow Jones long-term uptrend. The major stock index has completely crossed its 200-day exponential moving average (EMA) throughout the year. Despite a brief respite in October, the Dow continues to climb unilaterally, closing in the green for all but two of the past 11 months in a row and on pace to post another month of gains in November if bidders maintain their balance. .
