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Thread: Dow Tops 12,000 again on big manufacturing report.

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    Dow Tops 12,000 again on big manufacturing report.

    Stocks rallied strongly today, with the Dow Jones industrials ($INDU) crossing 12,000 and the the Standard & Poor's 500 Index ($INX) topping the psychologically important 1,300 level, as a report showed U.S. manufacturing expanding at the fastest rate since 1974.

    With today's gains, the market has recovered all of Friday's losses. In addition to the bullish report from the Institute of Supply Manufacturing, the rally was fueled by better-than-expected​ earnings. And General Motors (GM) reported better-than-expected​ February sales, boosting auto shares generally.

    The rally comes as protesters continued to call for Egyptian President Hosni Mubarak to step aside. Egypt's economy appears to be basically frozen. But the Suez Canal was operating normally, and there were reports more traffic than usual was going through the key waterway.
    source

    Yesterdays strong Chicago Purchasing Managers report shows that economic recovery is well under way, even though there is yet to be a significant amount of inflation that would normally occur in such an environment.

    There is good news from GM, BP, and UPS, which was a catylist for this mornings move that was nearly straight up to the key technical level.

    So much for the tired cliche of "Obama is destroying our economy".
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

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    Re: Dow Tops 12,000 again on big manufacturing report.

    well under way?

    depends on your standards, i guess

    most serious economists resist using dow as much of an indicator as she is so much more fickle than more sober indices

    ie, she's too prone to turning on em

    some better grounded data:

    Housing Starts Lowest Since 2009

    11% of Houses Empty

    http://www.cnbc.com/id/41019790

    Housing Double Dip Likely

    Foreclosure activity up across most US metro areas - Yahoo! News

    Half of U.S. Home Loan Modifications Default Again (Update1) - Bloomberg

    as for gm:

    Panel: GM stock sale may trim taxpayer recovery - Yahoo! News
    Last edited by The Prof; 02-01-11 at 09:54 PM.

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    Re: Dow Tops 12,000 again on big manufacturing report.

    Sorry but the Middle East crisis will end this so-called recovery within days, unless there are some major changes on the way, and I don't see it happening with our current inept leadership.

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    Re: Dow Tops 12,000 again on big manufacturing report.

    Asset purchases by the US Federal Reserve do not cause rising food prices in countries such as Egypt, the central bank’s chairman Ben Bernanke said on Thursday. “I think it’s entirely unfair to attribute excess demand pressures in emerging markets to US monetary policy, because emerging markets have all the tools they need to address excess demand in those countries,” he said. Mr Bernanke’s comments are a firm retort to critics who argue that by driving down US interest rates with quantitative easing the Fed is pushing capital flows into commodities and emerging markets.

    Answering questions after a speech at the National Press Club in Washington, Mr Bernanke said that rising food prices in the emerging world reflected the growing wealth of their populations and, in some countries, a failure to tackle inflation. “They can, for example, use monetary policy of their own. They can adjust their exchange rates, which is something that they’ve been reluctant to do in some cases,” Mr Bernanke said.

    Global food prices hit a record high in January according to the UN Food and Agricultural Organisation.

    In his speech, Mr Bernanke made one of his strongest calls yet for Congress to deal with what he called an “extraordinarily wide deficit”. “The long-term fiscal challenges confronting the nation are especially daunting because they are mostly the product of powerful underlying trends, not short-term or temporary factors,” Mr Bernanke said.

    Mr Bernanke has warned about the fiscal deficit before, but his speech represents a sharper call for action on a gap that is now running at 9-10 per cent of gross domestic product. “Sustained high rates of government borrowing would both drain funds away from private investment and increase our debt to foreigners, with adverse long-run effects on US output, incomes and standards of living,” he said. He said action would not only improve growth in the long run, “but could also yield substantial near-term benefits in terms of lower long-term interest rates and increased consumer and business confidence”.
    FT.com / US / Economy & Fed - Fed denies policy is causing food rises

    and then, of course, there's the other arm of the vice:

    Obama Calls Tax Cuts the 'Right Thing to Do'

    carry on, keynesians

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    Re: Dow Tops 12,000 again on big manufacturing report.

    LOL, if they're using the DOW to measure economic growth, we're in worse shape than we feared.

    The Dow means nothing, other than your 401K number is propped up a bit.

    Unemployment, home values, housing starts, discretionary spending, and inflation are the key. We're 0-for-5.

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    Re: Dow Tops 12,000 again on big manufacturing report.

    Quote Originally Posted by Erod View Post
    LOL, if they're using the DOW to measure economic growth, we're in worse shape than we feared.

    The Dow means nothing, other than your 401K number is propped up a bit.

    Unemployment, home values, housing starts, discretionary spending, and inflation are the key. We're 0-for-5.
    A 12,000+ Dow signals confidence in our financial markets. A 1,300 S&P is a more meaningful number.
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

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    Re: Dow Tops 12,000 again on big manufacturing report.

    Quote Originally Posted by Goldenboy219 View Post
    A 12,000+ Dow signals confidence in our financial markets. A 1,300 S&P is a more meaningful number.
    It also signals that oil may be headed for $125 a barrel.

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    Re: Dow Tops 12,000 again on big manufacturing report.

    Quote Originally Posted by Goldenboy219 View Post
    A 12,000+ Dow signals confidence in our financial markets. A 1,300 S&P is a more meaningful number.
    Could this confidence perhaps be powered by this:

    Fed to Buy Extra $600 Billion of Treasuries to Boost Growth - Bloomberg

    Delaying the inevatible, the market doesn't give a flying toss about the reality of the situation in the world and the states.

    If I were to use an analogy, the first stimulus stabilised the patient, this is like pumping him full of steroids every 30 seconds...

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    Re: Dow Tops 12,000 again on big manufacturing report.

    Quote Originally Posted by Jetboogieman View Post
    Could this confidence perhaps be powered by this:

    Fed to Buy Extra $600 Billion of Treasuries to Boost Growth - Bloomberg

    Delaying the inevatible, the market doesn't give a flying toss about the reality of the situation in the world and the states.

    If I were to use an analogy, the first stimulus stabilised the patient, this is like pumping him full of steroids every 30 seconds...
    It's a magic shell game.

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    Re: Dow Tops 12,000 again on big manufacturing report.

    Quote Originally Posted by Erod View Post
    It's a magic shell game.
    It's a recipe for ****ing disaster.

    If the Ben Bernanke wanted to blow up the world economy, he's going the right way about it.

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