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Trump cheers stock market's 'longest winning streak in decades'

Feb 16, 2017, 18:46 IST

Donald Trump.Mark Wallheiser/Getty Images

President Donald Trump took to Twitter on Thursday to praise the recent run up in stocks.

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"Stock market hits new high with longest winning streak in decades," tweeted Trump. "Great level of confidence and optimism - even before tax plan rollout!"

It is unclear what Trump is referencing when he says "the longest winning streak" since there are a number of different measures for that.

Most recently, the Nasdaq composite index has set a record-high close seven days in a row, which is the longest streak since 1999. Additionally, the S&P 500, Dow Jones Industrial average, and Nasdaq have all hit closing records at the same time for 5 straight days, the longest triple winning streak in 25 years

The impressive statistics don't stop there.

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Stocks have not seen a 1% decrease since October 11, the longest such streak since at least 2006, though that started before Trump was elected.

Finally, stocks are in the midst of the second-longest bull market in history, only beat out by the run from 1987 to 2000, but most of that occurred under President Barack Obama.

In any event, there has been a sizable run-up in the stock market since the election and all three major indexes stand at record highs.

Trump's Thursday morning tweet also cited a "great level of confidence." There have been recent highs in the two main measures of consumers confidence, though they have slipped in the past month as consumers.

Some of this confidence was backed up on Wednesday as retail sales, a more "hard data" measure of how much consumers are actually spending, beat expectations across the board. There is still some gap between the survey-based expectations, or "soft data," and the "hard data" that measures activity, but signs do point to increased confidence.

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The final bit of the tweet refers to Trump's purported tax plan, which Trump cited at meetings with airline CEOs and retail CEOs. Trump has said that he wants to lower the corporate tax rate from the current federal rate of 35% to 15%. He told airline CEOs on February 9 that he was releasing something "phenomenal in terms of tax" in the next "two to three weeks."

Since his election, Wall Street has been anxiously awaiting the plan due to the possibility that lower tax rates could increase profits for corporations.

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