View Full Version : DOW closes over 9000

07-23-2009, 01:53 PM
washingtonpost.com (http://www.washingtonpost.com/wp-dyn/content/article/2009/07/23/AR2009072301609.html?hpid=topnews)

The stock market soared to its highest level since November Thursday, as several major companies reported strong financial results and new data suggested the housing market is stabilizing and layoffs are slowing.
The Dow Jones industrial average (http://financial.washingtonpost.com/custom/wpost/html-qcn.asp?dispnav=business&symb=DJI&nav=el) jumped 188.03 points, or 2.1 percent, to close at 9069.21 -- the first time the index of blue-chip stocks has closed above 9000 since January. A broader measure of the stock market, the Standard & Poor's 500-stock index, rose 2.3 percent, to close at its highest level since November 4. The tech-heavy Nasdaq Composite index rose 2.5 percent.
The gains continue a rally that has driven the stock market up 44 percent since its March 9 low, including an 11 percent gain in the last two weeks. The surge has been driven by increasingly widespread signs that the economy is leveling off and reports of solid earnings from major companies.
"We're getting more accumulation of evidence that various sectors are stabilizing," said David Wyss, chief economist at Standard & Poor's.
Among Thursday's good news: Ford Motor (http://financial.washingtonpost.com/custom/wpost/html-qcn.asp?dispnav=business&mwpage=qcn&symb=F&nav=el), the lone U.S. auto manufacturer to have avoided bankruptcy and a government bailout, reported a lower loss than was expected by analysts, as it slashed expenses and gained sales relative to competitors. The company lost $638 million in the April-through-June quarter, or 21 cents per share, but analysts had predicted a loss more than twice as high.
Other companies with positive second quarter results announced yesterday included 3M (http://financial.washingtonpost.com/custom/wpost/html-qcn.asp?dispnav=business&mwpage=qcn&symb=MMM&nav=el) and AT&T.
Data about the underlying economy came in stronger than forecast, as well. Some 554,000 people filed new claims for unemployment benefits last week, the Labor Department said. That figure is high by historical standards, but it marked the third straight week with fewer 600,000 new claims. The number of people on the jobless rolls dipped slightly, to 6.2 million, the lowest level since early April.
Investors were also encouraged by positive signals on the housing market. The sales of previously owned homes rose 3.6 percent, the National Association of Realtors reported, to an annual rate of 4.9 million. That supports the idea that the housing market, while hardly going gangbusters, is stabilizing at a low level of activity.
"The economy is building up more momentum towards recovery," said Bernard Baumohl, chief global economist at the Economic Outlook Group.
The stock market rally has come about as investors have become more confident that the economy is not falling into a depression -- merely a deep recession. In particular, the financial sector has stabilized significantly since March.
The S&P 500 index rose 22.22 points, to close at 976.29, while the Nasdaq Composite rose 47.22 to 1973.6.

OVER 9000!

07-23-2009, 02:10 PM
An improving economy, how nice :D

07-23-2009, 09:34 PM
An improving economy, how nice :D

You're gonna jinx it!!

we can only hope....

Lil Javi
07-23-2009, 10:07 PM
Ah, how sweet it would be to stop hearing about the bad economy!

07-23-2009, 10:58 PM
WHAT 9,000!?

Seems this thing is working itself out.

07-23-2009, 11:06 PM
Unemployment is at 9.5% and climbing. Major state governments like California (ironically the state where the federal government's tax-and-spend mentality is most closely imitated) are literally going bankrupt. Our budget deficit and national debt are skyrocketing. Banks are collapsing and being rolled into the more-powerful-than-ever privately owned cartel called the Federal Reserve. The Marxist regime in Washington is spending trillions of dollars we don't have on unconstitutional takeovers of industry after industry. Our dollar is rapidly losing ground and will probably lose its position as the world's reserve currency. Foreclosure rates are astronomical. House values are low. Lines of credit to businesses are frozen. Consumer spending is down. Inflation is rising. The "Baby Boomers" are coming of age and SS/Medicare is going bankrupt under their weight.

The level of the DOW is great if you are in the markets but it doesn't mean anything when you look at the broader reality of our economy. And we are doing the worst thing possible in this situation which logically necessitates tightening our belts - we are allowing a Marxist regime to spend us and our children and grandchildren into a crushing amount of debt (we absolutely can not pay for what is being spent - the next several generations of Americans will be lucky to keep up with the interest) as they take over what used to be private industries in a free America. Less freedom, more economic decline in the private sector, total government power. The main division in this country is no longer Republican vs Democrat - it is aware of what is happening vs ignorant of it.

07-24-2009, 04:49 AM
I hope that some of you have the ability to buy gold, because hyperinflation is probably around the corner. Additionally, my estimate is that the DOW will hit 2000 before we see a true recovery. That may not happen until 2010, though. That's about how long it took during the Great Depression to reach rock bottom.

07-24-2009, 05:05 AM
So how come the US Dollar is so weak against the South African Rand all of a sudden - earlier this year it was 1:10, now it's down to 1:7.7, and I've just taken a job earning dollars, grrr.

Hopefully this will cause it to strengthen though ;)

07-24-2009, 05:40 AM
My advice is to keep whatever you are saving in another currency. The dollar is not going to recover any time soon - the Federal Reserve is printing money out of thin air and injecting this "monopoly money" into circulation, diluting the value of our currency. This is the prime cause of hyper-inflation such as they experienced in the Weimar Republic years ago.