Market Brief DJIA Rallies for Seventh Straight Day Longest Streak in Over a Year

Market Brief: DJIA Rallies for Seventh Straight Day, Longest Streak in Over a Year

In its highly-anticipated monetary policy meeting, the ECB cut deposit rates by 10bps to -0.5%, reintroduced QE (with no end date!), and introduced a tiering system for banks – see our initial review of the decision. The central bank also cut growth and inflation forecasts.
FX: After an initial drop, the euro rallied back to become the strongest major currency on the day in a classic “sell the rumor, buy the news” dynamic around the ECB. The Japanese yen was the weakest major currency.
Optimism about a possible interim US-China trade deal to delay tariffs boosted risk appetite (though that rumor was subsequently denied by a White House spokesperson)
US data: August CPI came in softer than expected at 1.7% y/y vs. 1.8% eyed, while initial jobless claims met expectations at 204k.
Commodities: Gold ticked higher while Oil shed over 1% on the day.

US indices traded higher across the board, marking the seventh straight rally for the Dow Jones Industrial average. This is the longest winning streak since last May.
Financials (XLF) were the strongest sector while Energy (XLE) was the weakest, hurt by the drop in oil prices.
Stocks on the move:
- Oracle (ORCL) gained 1% after co-CEO Mark Hurd announced he would take a leave of absence for health reasons.
- Car rental firm Hertz Global Holdings (HTZ) gained 20% after billionaire investor Carl Icahn increased his stake in the company above 30%.
- New IPO SmileDirectClub dropped -28% in its first day of trading.

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