For a second day in a row, all three benchmark averages hit record highs, powered by expectations that less government regulation and increased fiscal spending will fuel economic growth in a Trump administration. Technology and consumer staple stocks were outperforming, offsetting losses in the financial and material sectors.
Accordingly, the Dow is expected to end the week higher for a fifth consecutive week.
Wall Street was also encouraged by the continued improvement in consumer sentiment as evidenced by a monthly survey compiled by the University of Michigan. Attributing the continued rise in confidence to the outcome of the presidential election, the preliminary October sentiment index hit a near two-year high of 98.0 from 93.8 in November, the second highest read since Jan 2004, and well above expectations of 94.1.
Friday’s other economic data was encouraging as well as wholesale inventories dropped 0.4% in October, while sales swelled by 1.4%, lowering the inventory/sales ratio to 1.30 months from 1.32 months in September, the lowest ratio since early 2015.
By Travis Berry