Dow Jones has reported a strong start to 2017 and said that the Dow will continue to rise and it expects wage growth to accelerate.
The stock index jumped 7.8 per cent in 2017 to 3,093.75, a gain of nearly 26 per cent over 2016, and was up 3.2 per cent from the same period last year.
The Dow is up over 200 points in the last five months, the fastest run in four years.
It rose 0.4 per cent last month.
In a note to clients, Dow chief executive and president James Mulhall said: “Our earnings report on Thursday confirms that we are now in a position to continue the growth momentum in our business and are confident that the next few quarters will see a further boost in earnings.”
While we remain cautious on the earnings outlook, our long-term outlook remains positive.””
We expect to see further gains in earnings and growth in our financial results over the coming years.
“It also said that it expects to see “significant increases in net income over the next 12 months”.
Dow has been under pressure for a long time as the US economy has been struggling to find growth momentum and has been on a downward spiral.
Last year, it posted its worst quarterly profit in nearly a decade, with net income falling 17 per cent.
The US government has been targeting higher corporate taxes and higher spending on roads and schools, but the US Federal Reserve has not increased interest rates to slow the slide.
The Irish government is pushing ahead with an aggressive infrastructure spending plan, including new roads and bridges, as part of a package of stimulus.
Dow said the economic growth in Ireland was stronger than expected in 2017, adding: “The economy is performing strongly and we expect a further strong contribution from the new infrastructure spending program and further stronger revenue growth in 2018 and 2019.””
The key for Dow and the broader market is that we see an acceleration in wage growth and an increase in pay over the longer term.
“The Dow rose 0,5 per cent to 2,891.76, while the S&P 500 rose 1.5 per% to 2.7918.
Shares in the US technology giant Cisco Systems closed down 2.5 percent at $7.11 per share.
The European Commission has announced that it will not raise its benchmark interest rate in 2019, as expected.
The euro rose to $1.2375, from $1,2360.
A week ago, the US stock market closed at a record high.
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