The Dow Jones Industrial average kicked off the week closing at an all-time high for the 12th consecutive day on Monday, while the S&P 500 hit a new record level. The NASDAQ also eked out a gain. In housing news, pending home sales dipped in January, decreasing by 2.8% versus expectations for sales to rise by 1.1%. The major indices closed in the red zone on Tuesday, ahead of President Donald Trump’s congressional address. Gross Domestic Product numbers were shy of expectations, as a second estimate of U.S. economic growth showed fourth-quarter GDP held steady at 1.9%, versus expectations of a 2.1% expansion. Additionally, consumer sentiment ramped up to a 15-year high in February, according to data from the Conference Board. Sentiment increased to 114.8, up from a reading of 111.6 in January. The market was back to record levels on Wednesday with Basic Materials and Financial stocks leading the upswing. In his address on Tuesday night, President Trump promised “massive” tax cuts for the middle class and U.S. companies as well as $1 trillion in infrastructure investment. Meanwhile, the ISM Manufacturing Index rose to 57.7 versus an expected reading of 56.3. The following day, the Dow declined from record-level territory while the S&P 500 and NASDAQ also traded lower with Basic Materials and Financial stocks leading the downswing. Friday’s results were mostly flat, but the Dow still closed the week over 21,000. Bond yields soared late week, possibly in response to Fed Chair Janet Yellen’s indication that interest rates are likely to rise when the Committee meets later this month.
