The Dow has had a good run of late, with Wednesday being the sole dark spot this week. Janet Yellen’s assurances about a low interest rate environment provided a shot in the arm to investor sentiment. This helped the blue chip index post four consecutive days of gains, beginning last Thursday. So far this week, the Dow has gained an impressive 1.43%.
Last Week’s Performance
Friday was a good day for the Dow which gained 165 points, or 1.1%. This was primarily due to a fall in the unemployment rate, which dropped to a five year low. Meanwhile, the construction sector added 48,000 jobs over the month, which negated December’s decline of 22,000.
Friday’s gains, along with the gains the benchmarks scored on Thursday, helped markets finish in the green last week. A drop in initial claims and encouraging results from The Walt Disney Company (DIS) had helped benchmarks achieve their best single-day performance since Dec 18 on Thursday. The combined gains offset benchmarks’ losses last week.
Dov Gertzulin's DG Capital has had a rough start to the year. According to a copy of the firm's second-quarter investor update, which highlights the performance figures for its two main strategies, the flagship value strategy and the concentrated strategy, during the first half of 2022, both funds have underperformed their benchmarks this year. The Read More
The Dow This Week
Investors refrained from placing big bets on Monday ahead of Federal Reserve Chair Janet Yellen’s first testimony before lawmakers. As a result, the Dow closed almost at the same level at which it opened the trading session, adding a meager 0.1%.
Yellen’s pledge to keep interest rates low led benchmarks sharply higher on Tuesday. The blue chip soared, gaining 1.2%. The day’s gains extended benchmarks’ bullish run into their fourth day, the longest one for the year.
The rally ended on Wednesday, with the Dow losing 0.2%. Guidance cuts and lower profits from corporates caused the decline. However, some encouraging corporate results too helped restrict losses. But the blue chip index returned to its winning ways on Thursday. Investors overlooked weak consumer and employment data to focus on strong earnings numbers.
Components that Moved the Index