Dow Jones Shows Remarkable Poise as Record Streak Hits Six Days

U.S. stocks advanced Monday, with the Dow Jones Industrial Average setting a new record high on resurgent materials and energy companies.

Dow Jones Extends Record

The Dow Has been on a tear over the past two weeks, putting up gains in eight of the past nine sessions. The index rose 63.01 points, or 0.3%, to 22,331.35. That was the sixth consecutive record close.

Fifteen of 30 index members contributed to the gains. General Electric Co (GE) was the biggest gainer, climbing 2%. Caterpillar Inc (CAT) also advanced 2% per share.

New York-based JPMorgan Chase & Co (JPM) and Goldman Sachs Group Inc. (GS) were also among the biggest contributors, rising 1.4% and 1%, respectively.

On the opposite side of the ledger, Apple Inc. (AAPL) fell 0.8%. Nike Inc. (NKE) also fell 0.7)%.

The blue-chip index has added 3% over the past month as investors shrugged off geopolitical risks and violent weather events. Markets caught a favorable tailwind after U.S. President Donald Trump backed a deal proposed by Democrats to raise the debt ceiling and keep government funded. The agreement, which was panned by several GOP lawmakers, averts an imminent shutdown of government ahead of the Sept. 30 deadline.

September is a historically difficult month for stocks as investors return from the summer lull period. Since 1950, the Dow has posted an average decline of 1.1% in September.

Dollar Rallies Ahead of FOMC

The U.S. dollar strengthened against a basket of competitor currencies Monday, but wasn’t far off last week’s multi-year low. The dollar index (DXY) rose 0.2% to 92.02.

A stronger dollar hastened the decline of precious metals, which have been in a broad retreat over the past week. Gold futures for December settlement fell 1.1% to $1,311.00 a troy ounce, a three-week low on the Comex division of the New York Mercantile Exchange. December silver futures also plunged 2.8% to $17.20 a troy ounce.

The Federal Open Market Committee (FOMC) will begin its policy meeting on Tuesday, with the official rate statement due the following afternoon. Nearly 71% of economists polled by The Wall Street Journal expect the Federal Reserve to announce plans to shrink its portfolio holdings.

Through a series of bold moves, the Fed allowed its portfolio to swell to $4.5 trillion in the years following the financial crisis. With the economy back on track – at least, on paper and while ignoring things like wages, workforce participation and productivity – the central bank has been slowly removing policy accommodation.

Central bankers will also release their quarterly economic projections on Wednesday. The projections cover GDP, unemployment and inflation. The central bank’s now infamous “dot plot” summary of interest rate expectations will also be released.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi