5 Reasons Dow Will Finish The Week On an Incredible High

Boeing To Drive The Dow Higher

The Dow can’t rally without the help of its top 3 stocks— Boeing (NYSE:BA), Apple (NASDAQ:AAPL) and UnitedHealth (NYSE:UNH). The way the Dow is weighted means those three stocks account for roughly 21% of the index’s performance. Boeing sits at the top of that pack, making it the Dow’s most important performer.

US Economy In Focus

The Dow could also see a lift on Friday following the release of important economic data. Arguably the most important piece of the puzzle will be consumer sentiment data, which is expected to show that American shoppers are becoming more willing to loosen the pursestrings.

Schlumberger’s Q4 Kicks Off Industrials’ Results

The first week of earnings season has been a strong one for the Dow. The Q4 results so far have helped calm fears that earnings won’t live up to the market’s optimism. Oil and gas company Schlumberger (NYSE:SLB) will kick off earnings season for energy stocks when the firm announces its results before the bell on Friday.

Strong Chinese Data Adds Enthusiasm To The Dow

Friday morning saw Asian markets move higher after China announced economic growth of 6.1%  in 2019. That’s in-line with expectations and suggests that the trade war hasn’t been as detrimental to Beijing’s economy as some predicted.  That’s the slowest GDP growth the nation has seen in nearly 30 years— so it’s apparent that the trade war has had an impact. The Phase 1 trade deal is likely to help boost GDP growth in 2020, especially if more tariffs are lifted and progress on Phase 2 begins.

The Psychology Of 29,000

Finally, the Dow is likely to rise higher because it’s rising higher. While this week isn’t the first time the index made its way above 29,000, it is the first time the Dow stuck there. That marks a huge psychological milestone for traders and makes it much easier for the market to continue marching higher.