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Entries in Dow Jones Industrial Average (30)

Wednesday
Mar062013

Dow Jones Industrial Average Closes at All-Time High

Jin Lee/Bloomberg via Getty Images(NEW YORK) -- The Dow Jones industrial average reached record highs on Tuesday, surpassing a key level in its recovery from the 2008 financial meltdown.

After first hitting a record opening Tuesday morning, the Dow maintained its highs, closing up 125.95 points, reaching 14,253.77 at the end of New York trading at 4 p.m. ET, topping the previous record close of 14,164 achieved on Oct. 9, 2007.

Since the last record, the housing market collapsed, the economy has stumbled through years of slow growth and high unemployment, and the country has experienced the worst financial crisis since the Great Depression. The national debt has also skyrocketed during that time, from $9.4 trillion to $16.6 trillion.

"I think there is a lesson in there for investors: don't panic, stay the course, focus on intrinsic value and try to ignore the whims of Mr. Market," said Matthew Coffina, editor of Morningstar StockInvestor. "Over the long run, the U.S. stock market is still one of the greatest wealth creators."

Still, Coffina warned investors Tuesday to exercise caution.

"The market overall looks about fairly-valued, so there is relatively little margin of safety. It's a good time to focus on quality companies trading at reasonable valuations."

Some of his "current favorites" are C.H. Robinson Worldwide, Inc., a freight and logistics company that closed up 0.84 percent at $57.54; and Compass Minerals, a minerals producer that closed up 2.55 percent at $76.14 a share.

An index of 30 of the largest U.S. companies, the Dow is a widely-watched indicator of the "blue-chip" companies trading in the stock market. It has more than doubled from its low reached in 2009 after the government bailed out the major banks, which were crushed under the weight of bad mortgages fueled by easy-lending policies.

Stocks have been in a five-year bull market, helped by the Federal Reserve, which has kept interest rates near zero to assist in the recovery of the housing market.

Scott Brown, chief economist with Raymond James, said there is "nothing magical" about the Dow Jones industrial average reaching a record.

"The broader market has already been strong. However, the media attention may help to support consumer confidence. The stock market is a leading economic indicator," he said.

Wealth effects should add to consumer spending, although the stock market wealth is concentrated at the upper end of the income scale. By contrast, the payroll tax increase and higher gasoline prices have not had a strong impact, he said.

"We may see a tale of two economies in the near term. The middle class is squeezed by the payroll tax hike and the increase in gasoline prices. However, the housing market is improving and replacement needs will continue to drive vehicle sales," Brown said. "Business investment is supported by continued growth in corporate profits and an inventory rebuild may help support GDP growth in 1Q12. Government austerity and a soft global economy aren't going to help. In short, a mixed bag."

Copyright 2013 ABC News Radio

Monday
Jun252012

Stocks Down Amid Bleak Economic Prospects

Hemera/Thinkstock(NEW YORK) -- As fears about Europe persist, U.S. stock markets followed a selloff in Europe today with the Dow Jones Industrial Average ending the day at 12,502.66, down 138.12 points, or 1.09 percent.

There was more troubling news out of Europe today — Greece’s new finance minister had to step down because of an illness, Cyprus asked for a bailout, Spain’s banking crisis remains murky and expectations are low that European leaders will have any grand plan to deal with all of this.

The S&P 500 and NASDAQ ended the day lower as well.

Copyright 2012 ABC News Radio

Tuesday
Feb212012

Dow Passes 13,000 Mark -- First Time Since May '08

Mario Tama/Getty Images(NEW YORK) -- The Dow Jones industrial average on Tuesday hit the intraday high of 13,000 for the first time since May 2008. The stock index is at a nearly four-year high, and a few points from closing at 13,000, which it has not done since May 2008.

With European finance ministers agreeing to a new bailout package for Greece, all eyes were watching whether the Dow would pass the psychological threshold of 13,000 after being closed on Monday in honor of Presidents Day. The index briefly passed the mark shortly before 11:30 a.m. Eastern Time before returning to about 12,995.

The Dow opened Tuesday morning at 12,980, then dropped lower. The S&P 500 opened to 1,364, which was that index's highest close since 2008. The Dow Jones Industrial Average closed Friday at 12,950, up 0.35 percent, and the S&P 500 closed at 1,361.

Eurozone finance ministers finished seven months of deliberating in Brussels and agreed to a bailout plan for Greece of 130 billion euros, or about $171.5 billion, the country's second infusion in three years. Martin Koehring, an economist for the Economist Intelligence Unit, said without the bailout, Greece faced the prospect of defaulting on a 14.5 billion euro -- or about $19.1 billion -- bond redemption due by March 20.

Copyright 2012 ABC News Radio

Tuesday
Feb212012

Will Euro Zone Finance Deal for Greece Boost Dow Past 13,000?

Hemera/Thinkstock(NEW YORK) -- With European finance ministers agreeing to a bailout package for Greece, global stock markets are trending upward on Tuesday.  Equity markets in the U.S. opened up, after being closed on Monday in honor of Presidents Day, with all eyes watching if the Dow would pass the 13,000 mark.

On Tuesday morning, the Dow Jones Industrial Average opened to 12,980, approaching its highest level since May 2008. The S&P 500 opened to 1,364, also approaching its highest level since 2008. On Friday, the Dow closed at 12,950, up 0.35 percent, and the S&P 500 closed at 1,361.

Euro-zone finance ministers finished seven months of deliberating in Brussels Tuesday and agreed to a bailout plan for Greece -- its second in three year -- of 130 billion euros, or about $171.5 billion.  Martin Koehring, economist for the Economist Intelligence Unit, said without the bailout, Greece faced the prospect of defaulting on a 14.5 billion euros -- or about $19.1 billion -- bond redemption due by March 20.

"If we get a resolution or even improvement as far as Greece and stress in the financial markets is concerned, that could boost some of the gains we're seeing in the stock markets," Nick Bennenbroek, head of currency strategy for Wells Fargo, said ahead of the deal.

Meanwhile, back in the U.S., Home Depot announced strong fourth-quarter earnings Tuesday, including a 32 percent increase in net income to $774 million.  Kraft reported a fourth quarter net income of $830 million, up from $540 million, in line with expectations.

However, Walmart reported a 15 percent drop in profit for the fourth quarter to $5.16 billion, missing estimates.

Copyright 2012 ABC News Radio

Wednesday
Feb012012

Dow, S&P Have Best January in 15 Years

Hemera/Thinkstock(NEW YORK) -- The Dow and the S&P 500 may have had an off-day on Tuesday, but they still both had their biggest January percentage gain since 1997.

The Dow was up 3.4 percent in January, while the S&P was up 4.4 percent.

Both indices, however, ended the day lower.  The Dow was down 20 points and the S&P was down less than a point.

This January was good in part because previous years have been so dismal.  The recent recession wiped out several years worth of value in stocks, so the markets are climbing out of that hole.

Copyright 2012 ABC News Radio

Monday
Nov212011

Stocks Take Tumble as Supercommitee Stalls

Spencer Platt/Getty Images(NEW YORK) -- Stocks took a tumble on Monday following reports that the Congressional Joint Select Committee, or supercommittee, have failed to reach an agreement on spending cuts and tax increases to trim the deficit by the deadline of Nov. 23.

The Dow Jones Industrial Average dropped 290 points or over 2.4 percent to 11,511 around 12:05 p.m. ET and the Nasdaq was down 2.4 percent to 2,511.

In addition to the European debt crisis, investors are concerned that the failure to reach an agreement may lead to another credit downgrade for U.S. bonds and thus higher borrowing costs for the government.

Without a deficit reduction agreement, $1.2 trillion in "sequester caps," or automatic cuts, will be implemented. The cuts will affect a range of programs from Medicare and Medicaid to the Pentagon.

Copyright 2011 ABC News Radio

Tuesday
Oct252011

Netflix Stock Plunges after 800,000 Members Quit

Justin Sullivan/Getty Images(NEW YORK) -- If you were angry enough at Netflix to cancel your membership over major changes to the movie delivery service, you weren't alone: there were 810,000 people just like you, the company announced Tuesday.

The news sent the one-time Wall Street darling into another tailspin Tuesday as the stock -- already down 60 percent since the company announced a price hike in July -- dropped another 35 percent after the opening bell. Netflix stock briefly hit $300 per share on July 13; Tuesday it dropped below $75.

All of the red arrows for the company known for its red envelopes stemmed from a doubly disastrous decision. Netflix had a successful movies-by-mail service, but decided it would be left behind if it kept sending DVDs to people instead of streaming them online. When the company tried to jack up its prices -- and spin off its mail service to a new business called Qwikster -- customers revolted.

"They're making a transition from a 'momentum stock,' where you can do no wrong," said Vasily Karasyov, an analyst at Susquehanna Financial. "When the momentum's gone, you see the complete annihilation of the share value. That's why they call it a momentum stock."

Netflix actually beat Wall Street estimates when it reported profits Monday, but it warned that it would lose money in 2012. It needs to clean up the mess in the U.S., and it's trying to expand its service in the U.K.

"We moved too quickly," CEO Reed Hastings told ABC News last month. "We didn't give it enough thought. We didn't give it enough explanation, enough integration, and you know, that's legitimately caused our customers to be angry."

Karasyov is among several analysts who have downgraded Netflix stock to "negative" from "neutral."

"There is no quick fix," he said. "It there were a quick fix, don't you think they would have done it by now?"

Copyright 2011 ABC News Radio

Thursday
Oct062011

Stock Futures Point Up; Eyes on Apple after Steve Jobs' Death

Peter Macdiarmid/Getty Images(NEW YORK) -- Despite worries about European debt and the shaky U.S. economy, stocks made strong gains for a second day in a row Wednesday and futures are pointed up ahead of Thursday’s opening bell.

The Dow closed up 131 points on Wednesday, the Nasdaq gained 56 and the S&P 500 added 20.

Asian stocks saw solid gains after days of losses. Hong Kong's leading stock index closed up 5.7 percent.

A day after the death of Apple visionary Steve Jobs, a big question mark looms over the future of the company he co-founded. Its shares dropped slightly in overnight trading. Jobs stepped down as the company’s chief executive in August, saying he could no longer perform the daily tasks required of him in the role.

Moderate growth for holiday sales is the forecast from the National Retail Federation; it expects totals to rise 2.8 percent this year, smaller growth than last year but much stonger than in 2008 or 2009.

Toyota says its global car and truck production is back up to pre-disaster levels, before Japan's devastating earthquake and tsunami.

A high-speed passenger train service between Chicago and Detroit has taken a big step forward with Michigan’s purchase of a 135-mile stretch of track. The federal government is giving a major grant to the state.

Copyright 2011 ABC News Radio

Tuesday
Oct042011

Stocks Slide; Bernanke Cites Job Losses

Alex Wong/Getty Images(NEW YORK) -- After its lowest close in more than a year, the U.S. stock market opened down again Tuesday into bear market territory as Europe’s debt crisis continued to remain a concern for U.S. investors.

The Dow Jones Industrial Average fell to 10,468, down 168 points, or 1.58 percent, at 10:38 a.m. The broader S&P 500 was down 12 points to 1086 -- that’s a 20 percent decline from its April high, enough to herald a bear market on Wall Street if the losses hold until the closing bell.

Federal Reserve Chairman Ben S. Bernanke told a Congressional committee Tuesday that revisions based on economic data show an even longer recovery from the even deeper than previously judged recession.

“It is clear that, overall, the recovery from the crisis has been much less robust than we hoped,” said Bernanke during the hearing.

“Households have been very cautious in their spending decisions, as declines in the house prices and in the values of financial assets have reduced household wealth, and many families continue to struggle with high debt burdens or reduced access to credit,” said Bernanke.

“Probably the most significant factor depressing consumer confidence, however, has been the poor performance of the job market,” he continued. In the summer of 2011, private payrolls only added an average of 100,000 jobs per month, according to his report.

Bernanke shared some good news during his testimony, including a 15 percent rise in U.S. manufacturing production, saying “the functioning of the financial markets and the banking system in the United States has improved significantly.”

Copyright 2011 ABC News Radio

Monday
Oct032011

Market Report: Stocks Spinning after Worst Quarter Since ’08 

Mario Tama/Getty Images(NEW YORK) -- After closing out the worst quarter since the depths of the financial crisis in 2008, stocks continued to gyrate Monday on worries that Greece may default on its debt.

The Dow Jones industrial average finished the third quarter Friday with a 12 percent loss to 10,913 -- the broader S&P 500 did worse, declining 14 percent.  Investors sold shares on concerns that the economy may fall into another recession, European banks and government are on shaky financial ground and that the U.S. government won’t be able to tame its growing budget deficit.

After opening sharply down, stocks recovered somewhat on news that manufacturing in the U.S. ticked up in August. The Institute for Supply Management’s factory index rose to 51.6 for the month, and construction spending edged up 1.4 percent, the Commerce Department reported.

The Dow Jones Industrial Average fell 62 points to 10,851 at 11:08 a.m. ET. The S&P 500 fell 6 points or .5 percent; for the year, it’s down 5.74 percent.

Copyright 2011 ABC News Radio







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