01 December 2017•Update: 01 December 2017
By Barry Eitel
SAN FRANCISCO
President Donald Trump tweeted early Thursday that the stock market would be half of current levels if the Democratic candidate, Hillary Clinton had won the election last year.
At the opening of the markets Tuesday, the Dow Jones Industrial Average topped 24,000 points for the first time since the index was calculated in 1896.
“Stock Market hits new Record High,” Trump tweeted soon after. “Confidence and enthusiasm abound. More great numbers coming out!”
The president then took the opportunity to swipe at his Democratic rivals, although he did not provide any evidence to back up his claim.
“The Dow just broke 24,000 for the first time (another all-time Record),” he tweeted. “If the Dems had won the Presidential Election, the Market would be down 50% from these levels and Consumer Confidence, which is also at an all-time high, would be ‘low and glum!’”
The Dow, which is an index of 30 large publically traded American companies, spiked to hit 24,309.56 before dropping slightly in the day to close Thursday at 24,263.75, a 1.35 percent increase from the day prior.
The Dow has risen 33 percent since Trump’s election last November and has continually broken records in 2017. At the end of 2016, the Dow was at 1,972.60.
Retailers like Apple, Walmart and Home Depot, which all had a profitable week following Thanksgiving, powered the rally above 24,000 points. 3M, the creator of office supply products, and health insurer UnitedHealth Group also drove the surge.
Analysts pointed to the proposed legislation to overhaul the tax code that will likely be voted on soon in the Senate as another reason stocks continue to climb. Several Republican Senators who were considered hold-outs, including John McCain, voiced support for the bill Thursday. A similar bill passed the House. The bill would immediately cut the top corporate tax rate from 35 percent to 20 percent.
"The signs continue to be good, the Republicans are actually moving the ball forward and I think the market is optimistic that it's going to happen," Brad McMillan, the CFO for Commonwealth Financial, said in a statement amid the rally. "What happens in the market in the couple of days or weeks is going to depend on whether the Republicans can get this done."
