And just like that, Wall Street is celebrating yet another milestone: Dow 24,000.

This latest milestone occurred barely a month after the Dow hit 23,000.

So, if you’re searching for a great bargain this holiday season, don’t bother looking for it on Wall Street.

President Donald Trump took to Twitter last Thursday to boast about the Dow Jones Industrial Average topping 24,000 points for the first time and also about recent highs in consumer confidence ratings.

The Dow soared more than 300 points late last week as investors cheered over signs that the U.S. Senate was making progress on tax cuts.

It serves as even more evidence of the excitement among investors about the strengthening economy and record-breaking corporate profits that could be bolstered by the GOP plan to slash corporate taxes.

The Dow has spiked nearly 6,000 points since Trump’s election last year, notching 79 daily record highs since then.

The boom in the stock market is a clear reflection of improvements in the U.S. economy, which Trump is more than happy to take credit for — as seen through his notorious Twitter posts.

The global economy is also gathering momentum from a falling dollar, making American-made products cheaper overseas, benefiting U.S. corporations.

All of that has supercharged the optimism on Wall Street about corporate profits, which are ultimately driving stock prices skyward.

Earnings have been strong all year, and analysts are ratcheting their predictions higher for next year, too.

Stocks caught fire again over this past week as the Senate made progress on the bill that would slash the corporate tax rate in 2019 to 20% from the current 35%.

Jay Powell, Trump’s pick to replace Janet Yellen at the helm of the Fed, has also signaled that he won’t be rocking the boat at the Federal Reserve.

Powell gave his support last week for raising rates at a gradual pace, which will mean even more good news for investors…

But Can Trump Really Take Credit?

There’s no doubt that the president is clearly obsessed with the stock market.

He has tweeted about it nearly every week since July, claiming credit for the market’s booming performance this year.

Indeed, the Dow was up 57.91 points and closed at 24,289.50 this past Monday. It sat just under 20,000 when Trump took office and rose 257 points the day after his shocking election as the promise of tax reform made investors confident.

But while Americans and business leaders are glad to give Trump credit for some of the stock market’s success, they are loath to say he has changed the economy for good.

Presidents take way too much credit for the economy in general, and it’s not at all clear whether or not they’re responsible for economic outcomes in their first years, says Brendan Nyhan — a professor of government at Dartmouth College.

The economy doesn’t reset on inauguration day every four or eight years, waiting for the next president to roll in and start Tweeting self-praise.

Instead, a president’s impact on the economy could take years to go into effect, usually lasting long after their term is over.

If you’re trying to say a president is responsible for today’s economy, not only do you have to assume that pure luck is probably the greatest single driver, but more than two-thirds of the economy’s performance should be attributed to the previous president.

So, really, the success we’re seeing today is the result of a lingering Obama economy.

A president’s impact on the stock market and business cycles is minimal. Any credit or blame that presidents get for the economy often stems from factors beyond their control, chiefly the natural workings of the business cycle.

Economic fundamentals have driven the market the most. Although, the current administration’s pro-business message has emboldened corporate America.

That’s an important tool, and it illustrates the one area where presidents have some economic clout, although it’s shared with Congress: Overseeing federal spending and tax policy — a small win for Trump.

But in truth, his actual sway over economic matters is as limited as previous presidents’…

The Bottom Line

The one thing the stock market is for Trump, though, is a win.

At least for now. Whatever the politics, it’s one bright spot amid an otherwise historically unpopular presidency.

That’s all for now.

Until next time,

John Peterson
Pro Trader Today