13 in a row? Dow’s record streak could make history

Posted at 12:38 PM, Feb 28, 2017
and last updated 2017-02-28 15:22:01-05

The Dow could do something on Tuesday that it’s never done in its 120-year history.

It’s already closed at a record high for an incredible 12 days in a row. That’s only happened twice before.

And any gain on Tuesday for the Dow would make history as its first ever 13-day streak of all-time highs.

The ridiculous string of records comes as Wall Street gears up for President Trump’s speech at 9 p.m. ET to a joint session of Congress. Investors are craving more details about Trump’s pro-business agenda of tax cuts, deregulation and infrastructure spending.

Counting this week’s march higher, the Dow has now skyrocketed roughly 2,500 points since Trump’s victory.

The Dow is also just two days shy of matching its longest streak of up days (not record highs). That feat was set in 1897 when the index rallied 14 sessions in a row, according to Bespoke Investment Group.

“Needless to say, a lot of hope is built into this speech tonight,” Michael Block, chief market strategist at Rhino Trading, wrote in a note.

Block said that Wall Street could celebrate with a “big rally” if Trump talks “specific numbers” on tax reform, infrastructure spending and jobs programs.

But investors could be disappointed if Trump’s big prime time speech is too broad, lacking details about the timing and size of these proposals.

“Global markets have been somewhat patient and even resilient against the persistent Trump uncertainties,” Lukman Otunuga, a research analyst at FXTM, wrote in a note. “But the crack could start to show if nothing new is brought to the table.”

Even though stocks are on a long hot streak, the market hasn’t gone straight up lately. It’s been more of a slow grind higher.

The Dow is “only” up about 4% during the win streak, and is up 5% so far this year. And CNNMoney’s Fear & Greed Index has actually calmed down from “extreme greed” last week to simply “greed” this week.

While the current streak is “remarkable,” Bespoke analysts say the pace of gains has “not been outlandish or dramatic.”

Dramatic or not, the Dow is creeping closer to the 21,000 level. It’s less than 200 points away from that milestone, barely a month after racing above 20,000 for the first time.