The Dow (DJIA) posted its longest winning streak since 1987, finishing in the green for the 13th straight session. Over that period, the index has gained about 5%. Given the expected open today, the winning streak could be extended to a 14th session, a feat that has not been accomplished since 1897. There are several factors driving the recent rise, but most interestingly, is that this is being accomplished with the headwind of higher interest rates, and still above average inflation. 

 

For the recent momentum to continue going forward, inflation will have to continue to come down, and economic drivers such as jobs, consumer spending, and corporate profit growth, must keep pace. 

 

Some interesting historical facts worth looking at: 

1987

• the first episode of the Simpsons hit the air
• in the US, a gallon of gas was just under 90 cents, and the average new home price was 92,000
•  Black Monday - the October '87 stock market crash (eep!!)

if the streak goes one more

1897

• Bram Stoker's novel (Dracula) was first published
• global population was ~1.6 billion people
• some of the companies listed on the DJIA (original) were American Cotton Oil Company (now part of Unilever many years later), Tennessee Coal Iron, and Railroad Company, and The United States Rubber Company (which became BF Goodrich, and then ultimately acquired by Michelin)