Dow Industrials Top 26000 for First Time

The Dow Jones Industrial Average crossed 26000 for the first time Tuesday, just seven trading sessions after closing above its last 1000-point milestone. 

The blue-chip index gained 206 points, or 0.8%, to 26010 shortly after the opening bell. If the Dow industrials closes above 26000, the jump from 25000 would be the fastest 1000-point leap in its 120-year history. 

Tuesday’s historic rise builds on the Dow’s 25% gain last year and its seemingly unstoppable climb to start 2018. The rally began in late 2016 as a bet on infrastructure spending, deregulation and tax cuts, but spent 2017 rising on the back of strong corporate earnings growth. 

The start of fourth-quarter reporting season, which many money managers expect will again exceed analyst expectations, has the potential to catapult the stock market even higher, some fund managers say. They added that what they will be focusing on most, however, is what executives say they expect for 2018 results, particularly following the passage of tax overhaul. 

“We have a high level of confidence in fourth-quarter earnings numbers,” said Tom Wright, head of equities at JMP Securities. “But there’s an even higher level of optimism around what forward guidance will be now that we have a new corporate tax structure.”