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Fri Oct 5, 2012, 04:33 PM

Breaking: Dow Jones index closes at new 5-year high

Source: usa today

4:20PM EST October 5. 2012 - NEW YORK -- The stock market rally powered by a drop in the unemployment rate to 7.8%, its lowest level since January 2009, boosted the Dow Jones industrial average to a fresh five-year high even as other benchmark indexes closed lower.

A jobs report-driven rally lost steam in the afternoon but didn't prevent the Dow from closing up 34.79 points to finish at 13,610.15. The Standard & Poor's 500 index ended down 0.47 points to 1,460.93, and the tech-laden Nasdaq composite index finished down 13.27 points to 3,136.19.

The fact that the Dow clawed its way to another bull-market high signals that
the market may not be a dead-end for profitable returns as
many risk-averse investors believe, despite all the negative headlines that include Europe's debt woes, China's slowing economy and fears that the U.S. fiscal
situation could worsen and thrust the economy back into recession.

"The fact that the market is hitting fresh five-year highs will remind people how incredibly well the
market has done and that the equity culture is not dead," says says Tim Fidler, portfolio manager at Ariel Investments. "It will most definitely catch the attention of people who have been pulling money out of the market."

Read more: http://www.usatoday.com/story/money/markets/2012/10/05/sept-jobs-markets/1613559/

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:34 PM

1. ah hahaha. ole repugs, cant catch a break. nt

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Response to seabeyond (Reply #1)

Fri Oct 5, 2012, 10:53 PM

20. S&P 500 & Dow performance under GW Bush and Obama as of Fri Oct 5 close

{#} U.S. Stock Market as measured by the S&P 500 and the Dow Jones Industrial Average

Tired of hearing the righties insist that companies are "too uncertain" to make investments? Well, the investor and business community sure seem to like Obama, considering the stock market. Since Obama took office, the S&P 500 is up _72_% (it declined 37% during G.W. Bush's 8 years of supposed business friendly and resolute firmness and certainty).

# S&P 500: http://finance.yahoo.com/q/hp?s=%5EGSPC+Historical+Prices
# Dow Jones Industrial Average: http://finance.yahoo.com/q/hp?s=%5EDJI+Historical+Prices
# Using the last closing before inauguration (G.W. Bush inaugurated noon Jan 20, 2001, Obama at noon, Jan 20, 2009)
. . # When Clinton left office and G.W. Bush took office, the S&P 500 was at 1343.
. . # When G.W. Bush left office and Obama took office, the S&P 500 was at 850.
. . # Thus under G.W. Bush, the S&P 500 dropped 37%, from 1343 to 850. While under Obama, it rose from 850 to 1461 as of Friday 10/5/12 close, up 72%.

(I use the S&P 500 rather than the Dow Jones Industrial Average (DJIA) because it is a much broader index of U.S. stocks, containing about 75% of the total U.S. stock market by capitalization. I would rather use the Dow Jones U.S. Total Stock Market Index (^DWC) but its history extends only back to 2004). Other U.S. total market indexes also extend back only a few years.

If you want to use the Dow Jones Industrials Average (an unweighted average of 30 stocks), ticker ^DJI , it is:
Dow Jones Industrial Average: http://finance.yahoo.com/q/hp?s=%5EDJI+Historical+Prices
Jan 19, 2001 10,587 Last Dow close under Clinton
Jan 16, 2009 8,281 Last Dow close under Bush (a 22% decline under Bush)
Oct. 5, 2012 13,610 Latest Dow close as of this posting (a 64% increase under Obama)

===================================================================
To those that say a 5 year high (on the Dow) means inevitably a long big bad bear market is coming -- they said that repeatedly in the 1980s and 1990s -- and they were right for short periods of time. The market has basically been going sideways (with big wiggles) since early 2000 (when the S&P 500 closed at 1527) -- is it destined to go sideways forever? That would be quite unusual historically.

As for the manipulating the numbers - yes, those Wall Street Bureaucrats that calculate the index values want the jug-earred Mau Mau Socialist Muslim multicultural type to win. (Actually the Wall Street Bureaucrats are computers, what beasts).

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:34 PM

2. So much suffering on Wall Street under the President. It must end.

Wall Street, not his Presidency.

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:37 PM

3. Under the 'anti-business' president, too!

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:40 PM

4. Freepers are gonna say that "Obammy" fixed it

So will Boner, Yertle, and the rest of the bass turds!

However it is good news.

Seems like Willard and his ward can't catch a break, can they?

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:40 PM

5. This is great news....

more ammunition for the next 3 debates....Woo Hoo....

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:42 PM

6. A 5-year high is a fair notice that there's a fallback waiting to happen.

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Response to HereSince1628 (Reply #6)

Fri Oct 5, 2012, 05:16 PM

12. Someone ought to fix that

I'm no economist but these inevitable economic cycles are getting kinda silly, imo, and perhaps not so unavoidable if we set our mind to it.

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Response to DaveJ (Reply #12)

Fri Oct 5, 2012, 05:31 PM

13. Typically highs do not stand...they tend to be explorations

of the extreme of valuation. Consequently, there is much more often than not, a fall back from a new high.

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Response to HereSince1628 (Reply #13)

Fri Oct 5, 2012, 07:38 PM

16. Better than fake money

Again, I'm no expert, but take the housing boom. I'd label that as fake money where loans were given out creating money that really wasn't there. Granted, quantitative easing is not exactly genuine, but it's more real, imo.

Extreme valuation, like Apple, Google, has remedies. Investors are now turning to smaller dot coms. I personally would not get involved in creating an IPO, but the model might be valid if done properly (by people who know what they're doing).

I was just reading about how people tend to buy washers and dryers when the market is up. Eventually their buying becomes a smaller proportion of their income, and that's when the recession begins again. This can also be remedied by stratifying the recovery among different groups. Or by creating products that people continue to buy regardless of the economy. I-tunes, website subscriptions, I guess all that comes under the category of intellectual property, which is a much bigger market than it has ever been before.

I also put on rosy colored glasses in 1999 and then reality struck, twice. I was totally unprepared. So yeah it's best to be prepared for historic cycles to happen again, but I'm still hoping for the best.

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:47 PM

7. It's because Mitt won the debate!!!

Yeah.

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:50 PM

8. This plus the UE numbers are positive....

 

But we could see broad manipulations by the 1% in the next 30 days that give us end-October poor numbers.

It wouldn't surprise me to see the Krotch Brothers to lay off hundreds of thousands of workers to drive up the unemployment rate. I could see companies taking drastic steps to devalue their companies (illegal)...just to paint a bad picture.

I think WS is getting nervous they may have to deal with Obama for another 4 years and that prospect scares them to death...they run to their Mommies in their jammies.

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Response to Swede Atlanta (Reply #8)

Fri Oct 5, 2012, 05:55 PM

15. They certainly might do that,

but the numbers won't come out until ? 2 ? days before election? so not enough time to make much of them (I think/hope.)

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Response to elleng (Reply #15)

Fri Oct 5, 2012, 10:28 PM

19. Job numbers come out Fri 830a ET Nov 2. Election is Nov 6.Job numbers always come out First Friday

of the month.

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:51 PM

9. It's Obamas fault.

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 04:51 PM

10. Obviously another Obama conspiracy

for the sarcastically impaired

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 05:12 PM

11. It's a fix! n/t

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 05:52 PM

14. Won't the repukes LOVE this!

2 positive numbers in one day, suggesting things moving in a positive direction for most/all sectors! So we/Dems/W.H. can show the world/We the People what repukes are REALLY about (as Sen. McConnell said,) Do whatever they can to see to it that President Obama is only a one-term President!

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 08:20 PM

17. It's the Romney Rally!

Or, wait. Maybe it's the Bush Recovery?

I lose track of who the hero is supposed to be. I just know it's not the black guy living in the big white house.

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Response to trailmonkee (Original post)

Fri Oct 5, 2012, 08:34 PM

18. Somebody cooked that number, 5-yr high right before the election??? don't believe it-Jack Welch

 

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