Strong housing data combined with good earnings reports to spur a stock-market rally that pushed blue chips to a new 2009 high and the Nasdaq Composite Index to a winning streak unparalleled even in the dot-com bubble.
The Dow Jones Industrial Average leapt 188.03 points, or 2.1%, to 9069.29, helped by gains in components 3M, up 7.4%, and AT&T, up 2.6%. Both announced declines in profits smaller than analysts expected.
The Dow is at its highest point since Nov. 5, up 3.3% for the year, but still down 36% from its closing record in October 2007.
The Nasdaq Composite Index rose for a 12th day in a row -- the longest such streak since 1992. The tech-stock-heavy measure rose 2.5%, helped by an 11% gain in online auctioneer eBay after it said current-quarter results would top analyst estimates.
The S&P 500 rose 2.3% to 976.29, also its highest close since early November. All its sectors posted gains.
Treasury prices fell as investors put their money in stocks, pushing the yield on the benchmark 10-year note to its highest level in more than a month.
Some traders wonder how durable the stock gains will be, noting persistent weakness in employment and corporate revenue that hasn't shown much improvement even as profits have risen.
Posted by Sounds Great, a resident of the Another Pleasanton neighborhood neighborhood, on Jul 24, 2009 at 12:12 am
That news sounds great for Wall St. and investors, but unfortunately it will be years before it filters down to Main St. History, my man, history-during the Great Depression, which we are nowhere close to, the stock market recovered years before the economy ever did. In fact, it can be said the the American economy never really got going until WWII. Jobs are the key, not bulls and bears on Wall St.
Posted by Drexl, a resident of the Ironwood neighborhood, on Jul 24, 2009 at 2:17 am
Sounds Great- check history, the stock market took longer to recover, 1929 crash $1,000 down to $108 in 1932; full recovery to break even, 22 years later, 1954; so no, the market did not recover before the economy....Unemployment 9% in 1929 up to 23.6% in 1932, by 1942 4.7%; stayed in 5% range through 1970...so the economy recovered 12 years ahead of Wall Street; even by your own measurement "jobs are the key, not bulls and bears on wall st"
Posted by SteveP, a resident of the Parkside neighborhood, on Jul 24, 2009 at 9:13 am SteveP is a member (registered user) of PleasantonWeekly.com
not to mention inflation continuing to increase due to the printing of more money, trying to cover our massive debt that will plague the next generations, regardless of this short term market correction.
Had no trillions of stimulus money been appropraited, we'd still be in the same position we are now, just not as indebted.