Although markets remained range-bound on Monday after new home sales reached a new high, the surge in consumer confidence prompted the Dow to reach another record high – breaking above the 24,000 mark for the first time.
Who knew that more good news was waiting for investors this week after retailers reported record sales during Black Friday following the Thanksgiving holiday last week. First of all, the new home sales figure reached the highest in a decade, the first time since the subprime crisis crippled the economy, and secondly, consumer confidence reached above 129, beating estimates by a wide margin. These two factors and the tailwinds from the tax cuts bill prompted the Dow to surge to a new record high by Wednesday.
While the Senate is going to make some changes to the tax bill, markets are expecting it to be on President Trump’s desk by Christmas, and as long as there are no drastic changes, we should see more bullishness in the coming weeks leading up to the holidays.
Be sure to check out our previous week’s edition here, in which the Dow found rejuvenated enthusiasm after Congress passed the tax cuts bill.
