Dow Rises to Highest Finish of the Year

[Modbert]

CNNMoney.com Market Report - Jul. 30, 2009

NEW YORK (CNNMoney.com) -- Stocks surged Thursday, hitting their highest levels in nearly 9 months, as investors eyed the latest batch of better-than-expected profits and forecasts and a report that suggested the labor market is starting to stabilize.

The Dow Jones industrial average (INDU) rose 83 points, or 0.9%, according to early tallies, ending at its best level since Nov. 4. It was also the highest close for the blue-chip index in 2009.

The S&P 500 (SPX) index added 11 points, or 1.2%, ending at its highest point since Nov. 4.

The Nasdaq composite (COMP) gained 16 points, or 0.8%, to reach its highest close since Oct. 1.

Stocks drifted for the first three sessions of this week, as the recent euphoria that lifted markets faded out. The major gauges all gained between 11% and 12% in the previous two weeks as investors welcomed a spate of better-than-expected quarterly results.

"The market is finally getting its arms around the fact that we are close to being out of this recession," said Burt White, chief investment officer at LPL Financial.

White pointed to three supporting factors: the drop in the continuing claims portion of the weekly jobless report, the cumulative effect of better profit reports, and lessening fears about a slowdown in Asia and the global economy.

But wait, I thought all these people said because of Obama this recession is going to last 20 years.

So what this news mean to you? Reactions? Thoughts?

 

[Mad Scientist]

But wait, I thought all these people said because of Obama this recession is going to last 20 years.
So what this news mean to you? Reactions? Thoughts?

Yes the market is making money. That means stock traders as well as some institutions (companies) are making money. When you see companies start hiring people then I'll believe the recession is over.
If you do a little research Rob, and I mean a little, you'll see that some people are predicting a jobless recovery! Meaning companies will resume profit making but not hire much.

So what this news mean to you? Reactions? Thoughts?

 

[Oddball]

First of all, the profits are in terms of an inflated USD, so the value of the rise is somewhat dubious.

Secondly, congress is about to go on recess, so anyone would be somewhat optimistic in their trades.

 

[Just A Man]

The DJIA was at 14,164. Until it gets back to that mark "it's down".

 

[edthecynic]

But wait, I thought all these people said because of Obama this recession is going to last 20 years.
So what this news mean to you? Reactions? Thoughts?

Yes the market is making money. That means stock traders as well as some institutions (companies) are making money. When you see companies start hiring people then I'll believe the recession is over.
If you do a little research Rob, and I mean a little, you'll see that some people are predicting a jobless recovery! Meaning companies will resume profit making but not hire much.

So what this news mean to you? Reactions? Thoughts?

Of course, during the jobless recovery of the Bush II administration, the rising stock market was the most important factor for future growth.

"It's not a popular thing to say, but my suspicion is that it is upper income groups who tend to invest, and it's really investment that leads to stronger future growth, not consumption," said Paul Kasriel, director of economic research at Northern Trust in Chicago.

 

[edthecynic]

The DJIA was at 14,164. Until it gets back to that mark "it's down".

You can always tell the Ditto-Dopers mindlessly parroting their programming.

July 27, 2009
RUSH: The stock market is still down, gang. It peaked up at over 14,000.

 

[Just A Man]

The DJIA was at 14,164. Until it gets back to that mark "it's down".

You can always tell the Ditto-Dopers mindlessly parroting their programming.

Intelligent minds use facts to support their opinions, the rest resort to name-calling because they can't compose a cogent thought -- LOL

 

[hjmick]

Wow, nice to see the Bush TARP program bailout is finally starting to work.

 

[Alpha1]

CNNMoney.com Market Report - Jul. 30, 2009

NEW YORK (CNNMoney.com) -- Stocks surged Thursday, hitting their highest levels in nearly 9 months, as investors eyed the latest batch of better-than-expected profits and forecasts and a report that suggested the labor market is starting to stabilize.

The Dow Jones industrial average (INDU) rose 83 points, or 0.9%, according to early tallies, ending at its best level since Nov. 4. It was also the highest close for the blue-chip index in 2009.

The S&P 500 (SPX) index added 11 points, or 1.2%, ending at its highest point since Nov. 4.

The Nasdaq composite (COMP) gained 16 points, or 0.8%, to reach its highest close since Oct. 1.

Stocks drifted for the first three sessions of this week, as the recent euphoria that lifted markets faded out. The major gauges all gained between 11% and 12% in the previous two weeks as investors welcomed a spate of better-than-expected quarterly results.

"The market is finally getting its arms around the fact that we are close to being out of this recession," said Burt White, chief investment officer at LPL Financial.

White pointed to three supporting factors: the drop in the continuing claims portion of the weekly jobless report, the cumulative effect of better profit reports, and lessening fears about a slowdown in Asia and the global economy.

But wait, I thought all these people said because of Obama this recession is going to last 20 years.

So what this news mean to you? Reactions? Thoughts?

Buy now laddie....sell your house and car and buy stock....

 

[Big Black Dog]

Nothing is getting better. That is if you have money to invest in CD's. In my part of the world, the best rate I can get on a CD is 2.5%. When the rates for what the banks will pay for a CD increases, I will believe the economy is getting better. Until then, it sucks. I wouldn't invest any money on any stock or mutual fund if they put it in writing that I would make a profit. Don't be so easily fooled. Nothing is getting better really. Ask all the unemployed guys around here.

 

[edthecynic]

The DJIA was at 14,164. Until it gets back to that mark "it's down".

You can always tell the Ditto-Dopers mindlessly parroting their programming.

Intelligent minds use facts to support their opinions, the rest resort to name-calling because they can't compose a cogent thought -- LOL

And the fact is that 14,000 was an unsustainable bubble. And of course, while it fell during the Bush administration it was merely a market correction.
But when the "corrected" market fell when Obama was elected the market was the great predictor of future economic growth. Now that the "corrected" market is up following Obama's stimulus package it predicts nothing. Only the bubble level indicates recovery.

July 27, 2007
RUSH: We've been playing economic sound bites. Mellody Dobson, ABC, put things in perspective today in the stock market, that day it lost, what, 300 points or whatever. It's down again today some, but she put it in perspective. She said, hey, 2% drop, there's nothing to be worried about here. This is a percentage basis. This is nothing compared. If it had fallen three or four hundred points when at 7200, it's a bigger deal, but we're at 14,000, it drops, don't panic here. Unbelievable for the Drive-By Media to take a story that fits the action line of the economy's falling apart because of George W. Bush. So I put out a call here to Joe who's up there assembling the audio sound bites while Cookie is on maternity leave, and I said, "You can't leave out Erin Burnett here, the Street Sweetie," and, lo and behold, she was on Scarborough's show today on PMSNBC Morning Joe and she was reporting on the Dow Jones sell-off yesterday. This is what Erin Burnett said.

BURNETT: I want to remind everybody of three things, three things that should show you that you shouldn't be a lemming and run off the cliff. This is not an Armageddon-like situation. Here they are. We're just 4% away from an all-time high for the market, just 4% from an all-time high. And even if we fell another 850 points, we'd still be all right, because if we fell another 850 points, that would be 10% off of the level we hit last week when we were on here with great fanfare yelling and screaming about 14,000 on the Dow. That's just what we call a garden variety correction. So, hey, 850 points down today, and you should still be okay.

RUSH: I am so happy she still has her job after the first time I praised her, now doing it again. I realize I keep doing this, same thing with Mellody Dobson. If the past is any indication, I am putting their careers at risk by citing their work, but it's great to hear. It's great to see that this kind of accurate, sensible, rational economic reporting is taking place out there.

Obama Recession in Full Swing
November 6, 2008
RUSH: The truth about this is, the markets work six to nine months ahead. Everybody in the market is trying to figure out where we're going to be six to nine months ahead.

January 15,2009
RUSH: It's entirely fair to call this Obama's stock market because it's reacting to what Obama's plans are for the economy. It's not reacting to Bush. Bush isn't on anybody's mind here.

Financial markets are a rough predictor of future economic performance, and based upon what the markets know of Obama's plans, it's giving him a failing grade. I'm not being political. The markets deal in bottom lines. It takes the pulse of millions of investors, both in this country and abroad, to report the results, unfiltered.

 

[Meister]

But wait, I thought all these people said because of Obama this recession is going to last 20 years.
So what this news mean to you? Reactions? Thoughts?

Yes the market is making money. That means stock traders as well as some institutions (companies) are making money. When you see companies start hiring people then I'll believe the recession is over.
If you do a little research Rob, and I mean a little, you'll see that some people are predicting a jobless recovery! Meaning companies will resume profit making but not hire much.

So what this news mean to you? Reactions? Thoughts?

Of course, during the jobless recovery of the Bush II administration, the rising stock market was the most important factor for future growth.

"It's not a popular thing to say, but my suspicion is that it is upper income groups who tend to invest, and it's really investment that leads to stronger future growth, not consumption," said Paul Kasriel, director of economic research at Northern Trust in Chicago.

I'm curious as to what you mean by this...Please elaborate.

 

[edthecynic]

Yes the market is making money. That means stock traders as well as some institutions (companies) are making money. When you see companies start hiring people then I'll believe the recession is over.
If you do a little research Rob, and I mean a little, you'll see that some people are predicting a jobless recovery! Meaning companies will resume profit making but not hire much.

So what this news mean to you? Reactions? Thoughts?

Of course, during the jobless recovery of the Bush II administration, the rising stock market was the most important factor for future growth.

"It's not a popular thing to say, but my suspicion is that it is upper income groups who tend to invest, and it's really investment that leads to stronger future growth, not consumption," said Paul Kasriel, director of economic research at Northern Trust in Chicago.

I'm curious as to what you mean by this...Please elaborate.

Well, as you recall, in the run up to the 2004 election Bush needed a distraction from why job creation didn't meet his projections used to justify his 3 "job creating" tax cuts. The rising stock market served this purpose as a predictor of future growth then but, of course, a rising market no longer predicts future job growth now that Obama is president.

 

[edthecynic]

Of course, during the jobless recovery of the Bush II administration, the rising stock market was the most important factor for future growth.

I'm curious as to what you mean by this...Please elaborate.

Well, as you recall, in the run up to the 2004 election Bush needed a distraction from why job creation didn't meet his projections used to justify his 3 "job creating" tax cuts. The rising stock market served this purpose as a predictor of future growth then but, of course, a rising market no longer predicts future job growth now that Obama is president.

It's also enlightening to recall how CON$ervative pundits spun these numbers.

April 02, 2004, 3:10 p.m.

Jobless Recovery? Try Again

The big (payroll) jobs announcement has arrived at last.


The blowout new-jobs number of 308,000 for March puts the lie to political charges by the Kerry Democrats that the U.S. is in a jobless recovery. This is the largest gain in monthly non-farm payrolls in four years.

More, for the first quarter of this year, 513,000 new jobs were created, with the Labor Department acknowledging significant upward revisions for the prior two months. At this pace, roughly 2 million new jobs could appear in 2004, a number that is certainly within shouting distance of the 2.6 million new jobs originally predicted by chief Bush economist Greg Mankiw. The administration walked away from this projection, but they should have kept their nerve.

 

[garyd]

14k wasn't an unsustainable bubble. Yes the Dow is up but that rise is in reality driven by reports of earnings that are mainly based on TARP money not an improved business climate. Bush's jobless recovery lasted for about 6 months and then Job growth kicked in. If we wind up with both cap and trade and this insane health care proposal this jobless recovery will go the way of the dodo. Fortunately most everybody but El Presidente a and the far left freaks have figured this one out so the likelihood of us getting either one let alone both is fortunately quite low.

 

[concept]

14k was only unsustainable because democrats were in control of congress.

 

[garyd]

Exactly sir.

 

[edthecynic]

14k wasn't an unsustainable bubble. Yes the Dow is up but that rise is in reality driven by reports of earnings that are mainly based on TARP money not an improved business climate. Bush's jobless recovery lasted for about 6 months and then Job growth kicked in. If we wind up with both cap and trade and this insane health care proposal this jobless recovery will go the way of the dodo. Fortunately most everybody but El Presidente a and the far left freaks have figured this one out so the likelihood of us getting either one let alone both is fortunately quite low.

I love CON$ervative rationalizations!!! 3 years is 6 months in CON$ervative fuzzy math!

 

[edthecynic]

14k was only unsustainable because democrats were in control of congress.

Exactly sir.

Another brilliant CON$ervative rationalization!!! It's ALWAYS the Dem's fault as long as there are Dems somewhere in government.

The housing bubble burst because the Dems controlled Congress, but when the Tech bubble burst the GOP controlled Congress so it had to be Clinton's fault. Brilliant

 

[Darkwind]

What was it Mr. Obama said?

I can't get bogged down in the day to day minutea....

Its up now. Its at its high for the year....Yayyyyyyyy...

But wait! There are still 5 more months to go in this year and its almost a sure bet that the DOW will be right around where it is right now.

The economy won't start to recover until the summer of 2010 as the economists said.

Oh, and they said it would recover by summer of 2010 without the stimulus. So, put that 800 billion in the write-off column because it was all pure political payment.