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Current Events & Hot Topics Current Events & Hot Topics

Dow Breaks 14,000

Posted by on Feb. 1, 2013 at 10:28 AM
  • 1 Replies

The Dow Jones Industrial Average hit 14,000 for the first time since 2007, but where the blue-chip average goes from here is far from certain.

Indeed, the move itself was momentary. Virtually as soon as the bluechip index hit the maigc number it pulled back.

"Something like the Dow going to 14,000, I can contain my enthusiasm about that," Jack Bogle, founder and chairman of the Vanguard Group, said on CNBC. "It doesn't mean very much."

The last time the 30-stock Dow traded over 14,000 was in days before the financial crisis and the near-collapse of Wall Street. 

On Friday, the market crested that psychological level, buoyed by positive economic news.

One report showed the jobs recovery was continuing albeit gradually, while a separate data set showed growth in manufacturing.

Both spurred hopes that those types of gains would be enough to keep momentum going.

Coming on the heels of retail investors pumping money into stocks for the first time in a year, market bulls believe momentum is on their side.

Nearly $32 billion went into stock-based mutual funds in January, according to the Investment Company Institute.

"What investors are doing is only starting to suggest that there is some intrigue in the market with January inflows," said Liz Ann Sonders, chief investment strategist at Charles Scwab. "It's too soon to say a turn is in, but it does feel maybe a little different this time."

Looking ahead, the market faces a dilemma: It needs the Federal Reserve to continue its bond-buying program to stimulate the economy and stock-buying, but eventually it will need to break free from that support if the gains are to be sustained.

http://www.cnbc.com/id/100416162

The DOW's closing high was 14,164.53 on Oct. 9, 2007.

by on Feb. 1, 2013 at 10:28 AM
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smalltowngal
by Platinum Member on Feb. 1, 2013 at 1:23 PM

BUMP!

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