US Markets

Market will consolidate before the next run, with Dow 22,000 possible, Jeremy Siegel says

Siegel: Expect consolidation before the next run

The Dow Jones industrial average notched its 12th straight record close Monday and it is poised to go higher if the "Republican part" of President Donald Trump's agenda goes through, Wharton finance professor Jeremy Siegel told CNBC on Monday.

"I think 22,000 is what is justified if we get … lower corporate taxes and lower regulation," he said in an interview with "Closing Bell."

The market has rallied since Trump's victory in November, with the Dow up about 14 percent since then. Investors have been bullish on those anticipated tax cuts and deregulation, but Trump hasn't released any specific plans yet.

People are hoping to hear more details when Trump speaks to a joint session of Congress on Tuesday night.

That said, Siegel isn't anticipating a straight move higher from here.

"We should expect a pause and maybe a bit of a consolation, as we say, before the next run," he said.

He believes what is key to the market's next move is the jobs report, which comes out March 10, and two inflation reports that are released at the same time as the Federal Open Market Committee meeting the following week.

Those three data points will really dictate whether the Federal Reserve will hike rates in March, Siegel said.