Big banking players have helped the DOW Jones Industrial Average reach a record high. On Tuesday the DOW Jones neared 22,000 marks which was its fifth day of reaching a record high. The banks that assisted in the record breaking high for the index were Goldman Sachs, JP Morgan Chase and other banks that rank highly on the index.
Another company that managed to help the DOW Jones Industrial Average reach such a high was Apple who rose 0.89% as all of Wall Street eagerly awaited their quarterly report. Apple’s report comes as they have recently been named the largest publicly listed company and as it was expected after the bell it did not seem to have too much of an impact on that day’s trading. Even in the face of mounting pressure to get the new iPhone release date finalized it is still expected that Apple will post an increase in revenue for the quarter of around 6%, if the information from analysts is anything to go by. There has recently been a lot of noise regarding the delay of the release of the new iPhone handset.
Due to more adventurous advances in the technology of the latest model the iPhone 8 has been delayed so much that it may not be able to have any of its profits counted in the current quarter. Owing to the fact that the model is set to be so different, the manufacturing has not only had to move to different locations and companies but has also had to have an entire new process put in. For larger traders this is something that was expected as it is common for Apple to delay new handsets when they are so much more advanced than the previous model, but this will be sure to shake the confidence of smaller investors in Apple who invest at home using websites like CMC markets.
What have the challenges been in 2017’s markets?
Despite there being a large amount of recent uncertainty and political turmoil surrounding the Trump Administration the DOW Jones has managed to rise 11% this year. With investors and consumers not being sure if congress will make good on their promises to cut taxes and increase the spend on infrastructure it is a surprise that the index has managed to weather the storm so well in the face of economic adversity. With no progress on anything in Washington since Trump came to power many experts are surprised but relieved at the way the markets are going towards the end of 2017. The way the markets work on speculative news – immediately discounted the bad but taking a long time to factor in the good does not seem to have changed, but the indexes seem to be more robust in 2017 than was hoped for.
How have the first two quarters panned out?
Now that 2/3 of S&P companies have reported their second quarter earnings financial analysts are in a position to speculate about what may happen during the last two quarters. With 72% of companies beating their expectations some the investor worry about high valuations is alleviated but not gone completely. With two quarters still to go investors are worried that the current bubble of stability could very quickly burst.
The positive news from the first two quarters of this year is being taken on board but not necessarily celebrated until traders are certain that political situations likes Trump and Brexit will not have an overall impact on 2017 as a year. In January the DOW Jones broke through the 20,000 mark and has been consistently breaking barriers through the year, but it is yet to be seen if this market stability will continue right through until the end of 2017. Although all of the markets and indexes are currently showing a very marked improvement since 2016 there is still no guarantee this will last. We still have not seen any major changes from the Trump Administration that could go on to have any sort of effect on the markets, and we will not be feeling the repercussions of Brexit until we start to actually leave the EU.