Tags: art cashin | markets | dow | 25k

Art Cashin: Dow 25K Signals 'Change in Attitude' for Markets

By    |   Thursday, 04 January 2018 03:35 PM

Economic guru Art Cashin is advising savvy investors that the Dow's landmark surge above 25,000 on Thursday proves that Americans aren’t losing confidence in the markets.

The Dow milestone "is a psychological thing," said Cashin, UBS' director of floor operations at the New York Stock Exchange. "But the important thing is the markets had a kind of change of attitude," he told CNBC.

The Dow Jones industrial average rose above the 25,000 level for the first time on Thursday and other major indexes scaled new records, propelled by strong economic data both in the United States and abroad.

The 30-member blue-chip index crossed five 1,000-point marks in 2017 on the back of President Donald Trump’s pro-growth agenda and solid corporate earnings. It took less than a year for the Dow to add a 5,000-point milestone, which is the fastest since the index was created in May 1896.

Cashin last week had expressed some apprehension when the market didn’t surge every day last week.

"We were thinking we were going to have to put Santa's face on a milk carton and that the year was not going to be bright," Cashin said.

"New money for the new year kept pouring in," Cashin continued, "[and] seems to keep pouring in today," he said.

Cashin doesn’t see any major obstacles to the market climbing even higher.

"We've had a series of years in which we had an outstanding thing like a 20 percent rise. And if you get just the right kind of action, you get a rather satisfactory 10 percent follow up. And I would take that in a heartbeat," Cashin said.

Wall Street has started 2018 on a strong note. The benchmark S&P index closed above 2,700 for the first time on Wednesday and the Nasdaq settled above 7,000 a day earlier, Reuters explained.

“We saw Apple doing well, and we’re also seeing energy, which was a laggard last year, do well. The integrated names are gaining interest as oil prices are moving higher,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

Also, strong manufacturing and services sector data from the world’s largest economies provided a bullish tone on Thursday, while other data showed U.S. private employers stepped up hiring in December. Friday will bring the key U.S. non-farm payrolls report.

“As long as you have economic growth and earnings moving higher, there’s still a solid underpinning,” Krosby said.

To be sure, Trump himself took a celebratory victory lap on Twitter:

(Newsmax wire services contributed to this report).

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Economic guru Art Cashin is advising savvy investors that the Dow's landmark surge above 25,000 on Thursday proves that Americans aren’t losing confidence in the markets.
art cashin, markets, dow, 25k
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2018-35-04
Thursday, 04 January 2018 03:35 PM
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