On midday Wednesday, the Wall Street Journal posted that the Dow Industrials on are pace to notch a record high.
The Dow Jones Industrials, the S&P 500 and the Nasdaq to new records as financial markets closed early for the July 4th holiday, reported Fox Business.
“The Dow Jones Industrial Average rose a fourth straight session, pushing the blue-chip index above its record closing level in intraday trading Wednesday,” the Journal reported.
Within the body of the article, there are four items that stand out that could spell doom for the Democrats in 2020.
1. Home Depot and Procter & Gamble stocks are helping to lift the Dow Industrials
2. “Tesla rose 5.5% after the car maker said Tuesday it had delivered a record 95,200 vehicles in its latest quarter,” reported the Journal.
Both of these are an indicators that consumers are still buying.
3. There has been an “easing” of trade tensions with China, relaxing investors fears
4. Lastly, the Journal reports, “[e]yes now turn to the Federal Reserve and whether it will cut interest rates this year—a move that would support further stock gains, analysts said.”
“Investors largely expect the central bank to slash rates at one of its coming meetings, according to CME Group data.”
“With the modestly positive agreement to restart trade negotiations between the U.S. and China, the bullish narrative now pivots to the Fed meeting at the end of July, when it is overwhelmingly expected to lower the overnight rate by a quarter point,” Ameriprise Chief Market Strategist David Joy told the Journal.
All of these factors, as well as job growth (which is still growing, albeit slower), weigh into how well the economy is doing, indicate that the economy is doing well and that is not good for Democrats.
Now, anyone with the slightest knowledge of history knows that the economy can seemingly turn on a dime.
Coming out of the first Gulf War in 1992, George H.W. Bush had soaring popularity. However, by election time, the economy had faltered and the nation, with Ross Perot’s help, elected Bill Clinton.
The same thing happened again in 2008, when Barack Obama was elected as the full impact of the Great Recession took hold.
However, given a currently-strong economy, if this economy continues chugging through the 2020 election, the Democrats will be hard pressed to make a viable argument that voters should change horses midstream.
- ADP National Employment Report: Private Sector Employment Increased by 102,000 Jobs in June
- Dow, S&P 500, Nasdaq hit new records ahead of July 4th