LA Private

Dow posts best winning streak since 1987

The Dow Jones Industrial Average rose Wednesday, notching its best winning streak since 1987 as traders digested a Federal Reserve rate hike and major corporate earnings.

The Dow average added 82.05 points, or 0.23 per cent, to 35,520.12. The 30-stock index extended its rally to 13 days, an advance it hasn’t achieved since January 1987. If the index rises for 14 straight days on Thursday, it will match the longest streak ever going back to June 1897. That was roughly one year after the Dow was created in May 1896.

The S&P 500 declined 0.02 per cent to end at 4,566.75. and The Nasdaq Composite lost 0.12 per cent to 14,127.28.

The Federal Reserve raised rates to their highest level in more than 22 years after passing through a much-anticipated quarter point hike at the conclusion of its meeting.

However, Treasury yields slid after Fed Chief Jerome Powell suggested the central bank could pause again here. The Fed next decides on rates on September 20.

Turning to company news, bank shares including Wells Fargo gained after the comments as traders bet that the economy could skirt a recession if the Fed stays on hold.

On the bullish side, Google-parent Alphabet rose about 5.8 per cent as cloud revenue growth helped propel the company to a better-than-expected quarter. Also, Dow component Boeing gained 8.7 per cent after reporting a second-quarter beat following a rise in commercial aircraft deliveries.

However, not all earnings news was positive as Microsoft slid 3.7 per cent a day after reporting slowing cloud revenue growth.

And amid robust economic data and stock market gains, investors are avoiding US consumer companies exposed to economic downturn risks, showing widespread recession fears despite the strong performance of leading stock indices, and instead focusing on secular growth themes like artificial intelligence, reflecting a lack of conviction in a cyclical recovery.

In commodity news, Saudi Arabia plans to extend a 1 million-barrel oil supply cut into September to support crude prices amidst a fragile economic backdrop, while rising gasoline prices indicate inflation concerns worldwide; JPMorgan Chase predicts gold prices will exceed US$2000 an ounce by year-end and reach new records in 2024 due to falling interest rates during a likely US recession.

UN International Seabed Authority (ISA) ruled out an immediate decision on deep-sea mining, delaying an agreement until next year. Mining companies argue practice would support global energy transition with critical minerals; critics suggest insufficient research on impact to marine ecosystems.

Overall, overnight US sectors were mixed. Communication services was the best performer, whilst Tech was the worst.


The SPI futures are pointing to a flat start.


One Australian dollar at 7:20 AM was buying 67.58 US cents.


Gold added 0.33 per cent. Silver gained 0.59 per cent. Copper lost 0.34 per cent. Oil fell 1.07 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.19 per cent, Frankfurt lost 0.49 per cent, and Paris closed 1.35 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei shed 0.04 per cent, Hong Kong’s Hang Seng lost 0.36 per cent while China’s Shanghai Composite closed 0.26 per cent lower.

The Australian sharemarket closed 0.85 per cent higher at 7402.

Dividends payable

Sunland Group (ASX:SDG)
360 Capital Group (ASX:TGP)
Australian Unity Office Fund (ASX:AOF)
360 Capital REIT (ASX:TOT)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.


The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.