Dow Hits All Time High
Dow Soars to New Closing High of 11,727
The Dow Jones industrial average finally reached new heights Tuesday, extending Wall Street's seven-year recovery with a record closing level after climbing into uncharted territory in trading earlier in the day.
The index of 30 blue chip stocks ended the session at 11,727.34, according to preliminary calculations, wiping out the previous record of 11,722.98.
Earlier, the Dow crossed its old trading high of 1,750.28, rising up to 11,758.95. Both of the previous records were set Jan. 14, 2000.
While investors welcomed the Dow's latest achievement, it comes at a time the stock market is more conservative, even more muted, than the Wall Street of early 2000. Then, investors were still piling exuberantly into high-tech stocks. In 2006, the market's gains come only after investors' careful parsing of economic data and corporate earnings reports.
Tuesday's advance came on the second straight day that oil prices fell sharply, helping to calm fears about inflation and possible interest rate increases. But the market as a whole has been choppy, with traditionally defensive sectors such as pharmaceuticals and utilities leading the market higher since its May and June decline, said Doug Johnston, head of U.S. trading at Adams Harkness in Boston.
"I think we break out to the all-time high, then we could get a blow- off correction off of that," Johnston said.
The Dow, whose well-known large-cap stocks include aluminum producer Alcoa Inc., discount retailer Wal-Mart Stores Inc. and the Walt Disney Co., has recovered ahead of the broader Standard & Poor's 500 and the Nasdaq composite index, which also peaked in early 2000. Those indexes were inflated _ overinflated in the case of the Nasdaq _ by the dot- com bubble.
The S&P 500's high close was 1,527.46, and the index remains more than 12 percent away from that milestone. The Nasdaq is even farther off its highs and no one expects it to eclipse its record of 5,048.62 any time soon.
To reach new highs, the Dow had to recover not only from the high-tech collapse, but also recession and the effects of the Sept. 11, 2001, terror attacks. The stock market was further shaken by corporate scandals at companies including Enron Corp. and WorldCom Inc., and the Dow sank to a five-year closing low of 7,286.27 on Oct. 9, 2002, nearly 38 percent off its record high close.
.............................Trader Watches The Board
The market's recovery was helped by more than four years of solid corporate profit growth, and more recently, the Federal Reserve's decision to halt its more than two-year string of interest rate hikes.
According to preliminary calculations, the Dow rose 56.99, or 0.49 percent, at 11,727.34. The Dow had briefly surpassed its closing high on Thursday and Monday before retreating.
The broader stock indicators also closed higher. The S&P 500 index was up 2.79, or 0.21 percent, at 1,334.11, and the Nasdaq rose 6.05, or 0.27 percent, to 2,243.65.
Advancing issues led decliners by more than 8 to 7 on the New York Stock Exchange, where volume came to 1.70 billion shares.
The decline in oil prices was the catalyst of the day. A barrel of light crude settled at $58.68, down $2.35, on the New York Mercantile Exchange.
Oil prices have had a stunning fall from their intraday high for the year of $78.40 a barrel, reached in July. Other commodity prices have dropped as well, with gold descending from prices earlier this year that it hadn't seen for three decades.
"When oil and gold start to back off, that's a sign that the economy is slowing and inflation is not a fear," said Joseph Sunderman, vice president of research and development, Schaeffer's Investment Research in Cincinnati.
The entire energy sector was lower, with Exxon Mobil Corp. down $1.59 at $65.41 and Chevron Corp. down $1.57 at $62.94.
Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.62 percent from 4.61 percent late Monday. The dollar was mixed against other major currencies, while gold prices fell.
Marvell Technology Group Ltd. fell $2.29, or 12 percent, to $16.80 after it said its third-quarter revenue would drop 10 percent from its second-quarter revenue. Separately, the company also said it plans to restate past financial results after a probe into its historical stock option practices turned up discrepancies.
Quest Diagnostics Inc., which provides diagnostic testing services, dropped $10.90, or 17.90 percent, to $50 after losing a nationwide contract with health insurer UnitedHealthcare Inc. The existing agreement expires at the end of the year.
Kohl's Corp., said its sales at stores open at least a year, a closely watched measure of retail performance, rose 16.3 percent in September. The low-price chain, which also boosted its third-quarter profit forecast, rose $2.04 to $67.53.
Fresh concerns about the upcoming release of Sony Corp.'s much- anticipated PlayStation 3 video game console and reports of erratic performance dragged Sony shares down 63 cents to $39.10.
The Russell 2000 index of smaller companies fell 0.46, or 0.06 percent, to 718.35.
Overseas, Japan's Nikkei stock average closed down 0.08 percent. Britain's FTSE 100 dropped 0.35 percent, Germany's DAX index slid 0.12 percent, and France's CAC-40 fell 0.45 percent.
Read Story Here
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I dont think this story got enough attention yesterday. And I will keep saying it THIS ECONOMY IS KICKING BUTT!!
The Dow Jones industrial average finally reached new heights Tuesday, extending Wall Street's seven-year recovery with a record closing level after climbing into uncharted territory in trading earlier in the day.
The index of 30 blue chip stocks ended the session at 11,727.34, according to preliminary calculations, wiping out the previous record of 11,722.98.
Earlier, the Dow crossed its old trading high of 1,750.28, rising up to 11,758.95. Both of the previous records were set Jan. 14, 2000.
While investors welcomed the Dow's latest achievement, it comes at a time the stock market is more conservative, even more muted, than the Wall Street of early 2000. Then, investors were still piling exuberantly into high-tech stocks. In 2006, the market's gains come only after investors' careful parsing of economic data and corporate earnings reports.
Tuesday's advance came on the second straight day that oil prices fell sharply, helping to calm fears about inflation and possible interest rate increases. But the market as a whole has been choppy, with traditionally defensive sectors such as pharmaceuticals and utilities leading the market higher since its May and June decline, said Doug Johnston, head of U.S. trading at Adams Harkness in Boston.
"I think we break out to the all-time high, then we could get a blow- off correction off of that," Johnston said.
The Dow, whose well-known large-cap stocks include aluminum producer Alcoa Inc., discount retailer Wal-Mart Stores Inc. and the Walt Disney Co., has recovered ahead of the broader Standard & Poor's 500 and the Nasdaq composite index, which also peaked in early 2000. Those indexes were inflated _ overinflated in the case of the Nasdaq _ by the dot- com bubble.
The S&P 500's high close was 1,527.46, and the index remains more than 12 percent away from that milestone. The Nasdaq is even farther off its highs and no one expects it to eclipse its record of 5,048.62 any time soon.
To reach new highs, the Dow had to recover not only from the high-tech collapse, but also recession and the effects of the Sept. 11, 2001, terror attacks. The stock market was further shaken by corporate scandals at companies including Enron Corp. and WorldCom Inc., and the Dow sank to a five-year closing low of 7,286.27 on Oct. 9, 2002, nearly 38 percent off its record high close.
.............................Trader Watches The Board
The market's recovery was helped by more than four years of solid corporate profit growth, and more recently, the Federal Reserve's decision to halt its more than two-year string of interest rate hikes.
According to preliminary calculations, the Dow rose 56.99, or 0.49 percent, at 11,727.34. The Dow had briefly surpassed its closing high on Thursday and Monday before retreating.
The broader stock indicators also closed higher. The S&P 500 index was up 2.79, or 0.21 percent, at 1,334.11, and the Nasdaq rose 6.05, or 0.27 percent, to 2,243.65.
Advancing issues led decliners by more than 8 to 7 on the New York Stock Exchange, where volume came to 1.70 billion shares.
The decline in oil prices was the catalyst of the day. A barrel of light crude settled at $58.68, down $2.35, on the New York Mercantile Exchange.
Oil prices have had a stunning fall from their intraday high for the year of $78.40 a barrel, reached in July. Other commodity prices have dropped as well, with gold descending from prices earlier this year that it hadn't seen for three decades.
"When oil and gold start to back off, that's a sign that the economy is slowing and inflation is not a fear," said Joseph Sunderman, vice president of research and development, Schaeffer's Investment Research in Cincinnati.
The entire energy sector was lower, with Exxon Mobil Corp. down $1.59 at $65.41 and Chevron Corp. down $1.57 at $62.94.
Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.62 percent from 4.61 percent late Monday. The dollar was mixed against other major currencies, while gold prices fell.
Marvell Technology Group Ltd. fell $2.29, or 12 percent, to $16.80 after it said its third-quarter revenue would drop 10 percent from its second-quarter revenue. Separately, the company also said it plans to restate past financial results after a probe into its historical stock option practices turned up discrepancies.
Quest Diagnostics Inc., which provides diagnostic testing services, dropped $10.90, or 17.90 percent, to $50 after losing a nationwide contract with health insurer UnitedHealthcare Inc. The existing agreement expires at the end of the year.
Kohl's Corp., said its sales at stores open at least a year, a closely watched measure of retail performance, rose 16.3 percent in September. The low-price chain, which also boosted its third-quarter profit forecast, rose $2.04 to $67.53.
Fresh concerns about the upcoming release of Sony Corp.'s much- anticipated PlayStation 3 video game console and reports of erratic performance dragged Sony shares down 63 cents to $39.10.
The Russell 2000 index of smaller companies fell 0.46, or 0.06 percent, to 718.35.
Overseas, Japan's Nikkei stock average closed down 0.08 percent. Britain's FTSE 100 dropped 0.35 percent, Germany's DAX index slid 0.12 percent, and France's CAC-40 fell 0.45 percent.
Read Story Here
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I dont think this story got enough attention yesterday. And I will keep saying it THIS ECONOMY IS KICKING BUTT!!
posted by Marie's Two Cents | 8:13 AM
8 Comments:
I read about it. The Dow has finally, after 6 years, gone back to the high point it reached in January of 2000.
But the Nasdaq remains 55.6 percent below its 5,048.62 peak recorded on March 10, 2000
The Dow went into a spiral after Bush became president and it has taken it six years to get back to where it was during Clinton's administration.
Wow. Big deal.
I do agree with Mrs. Green, that it took President Bush six years since taking office to get the Dow back. The good news is the economy is taking a turn for the better. I am quite relieved the economy making a turn for the better. Although economic growth was slower in September that expected, it still grew.
Mrs Green,
I read about it. The Dow has finally, after 6 years, gone back to the high point it reached in January of 2000.
But the Nasdaq remains 55.6 percent below its 5,048.62 peak recorded on March 10, 2000
The Dow went into a spiral after Bush became president and it has taken it six years to get back to where it was during Clinton's administration.
Wow. Big deal.
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Every time there is something good going on with the Economy you Liberals feel you have to pee all over it.
I hate to have to agree with the one who needs meds down below that I will get to in a few minutes but, you on the left HAVE forgotten the economic impact 9-11 had on this entire Country and to come back from that kind of a knock 5 years later is astounding.
But you cant fathom the idea that the Economy under Bush is doing very very well indeed.
Penn,
I do agree with Mrs. Green, that it took President Bush six years since taking office to get the Dow back. The good news is the economy is taking a turn for the better. I am quite relieved the economy making a turn for the better. Although economic growth was slower in September that expected, it still grew.
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I guess you forgot the economic impact of 9-11 too. Just think how well this economy would be doing had 9-11 never happened!
Anon,
Um...It seems to me you have anger issues. And although I agree with some things you say, you cant keep up this swearing and calling people names.
Anonymous,
I just have one question for you. What are youo basing your facts on? I never said the economy was in bad shape, just it did not grow as well as expected. Usually consumer spending increases slightly in September, in preparation for the holiday season. This year it did not take that trend. Apparently YOU need to take a few economics courses. Also you said no inflation, apparently YOU DON"T KNOW what your taking about. You're telling me that I don't know who to vote for, from someone who uses anonymous on a blog? HAHA. You think I would heed advice from someone who hides behind a generic name?
Marie,
Around the time of 9/11 the economy already was in recession. Even before President Bush took office economists were screaming recession over and over. recession is what happened, the 9/11 came and toppled a receding economy even more. the good news is the economy will continue to stay strong as long as energy prices continue to fall.
Penn,
Marie,
Around the time of 9/11 the economy already was in recession. Even before President Bush took office economists were screaming recession over and over. recession is what happened, the 9/11 came and toppled a receding economy even more. the good news is the economy will continue to stay strong as long as energy prices continue to fall.
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I wouldnt worry about Anon, lol he comes on here with all that hate and he will get the boot!
Yes I believe the economy is strong, consumer confidence is high, gas prices falling has alot to do with it, the Deficit is dropping (Slowly) but it's dropping, 4.7% unemployment, home ownership at an all time high, etc...All looks good to me.
At least you have a head on your shoulders, I cant say the same about Whacko up there!
To Pennsy, just how well was the economy supposed to grow? Let's see, When Bush assumed office we were already in a recession from the polcies of the Clinton administration. He financed the Country's debt with short term high interest (5 year) bonds. That means after five years of this completely unwise and self serving policy the American people had to pay off this debt just when the tech bubble blew and the dot com came crashing down. Slick Willy was able to bail and leave this mess for the next admin, that just happened to be Bush.
So lets recount what went on when Bush took office, he was left with a recession, a tech market crash along with the seeds of major attack on our property and economy in the 9/11 attacks. No wonder the Slickster attempted to defend himself at the expense of Chris Wallace, who would want his record following them around?
It is a miracle in itself that economy has rebounded so quickly after it was knocked down from inside and outside forces. How much did you say it should have grown?
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