Dow up 123 points to NEW record high...

[6SpeedTA95]

WOOT...two days in a row and a new record

NEW YORK — Wall Street advanced Wednesday, taking the Dow Jones industrials further into record high territory, despite more evidence of a slowing economy.

Stocks rose after the Institute for Supply Management said growth in the nation's service sector slowed in September from August, reflecting managers' concerns about the economy, interest rates and security issues. And a Commerce Department report that factory orders were weak again in August also left traders undeterred.

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Wall Street has been torn between concerns that the economy is slowing too much and anticipation that economic data like Wednesday's reports will persuade the Federal Reserve to keep interest rates steady, or even lower them.

Investors were waiting for more clues about the economy in a speech by Federal Reserve Chairman Ben Bernanke, who is scheduled to speak on savings before the Economics Club of Washington.

On Tuesday, the Dow set new closing and trading highs, wiping records that had stood since Jan. 14, 2000.

In midmorning trading Wednesday, the Dow rose 38.50, or 0.33 percent, to 11,766.48, a new high.

Broader stock indicators also rose. The Standard & Poor's 500 index was up 2.22, or 0.17 percent, at 1,336.33 and the Nasdaq composite index rose 9.88, or 0.44 percent, at 2,253.53.

Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.57 percent from 4.62 percent late Tuesday. The dollar was down against other major currencies, while gold prices were down.

Light sweet crude was quoted up 28 cents at $58.96 a barrel on the New York Mercantile exchange.

Wal-Mart Stores Inc. fell $1.15, or 2.33 percent, to $48.30 after saying its September sales at stores open at least a year, a closely watched measure of retail performance known as same-store sales, rose 1.3 percent, not 1.8 percent as the company had forecast. The world's largest retailer, which plans to release September sales figures Thursday, said it miscalculated when it issued its projection.

Biotechnology company ImClone Systems Inc. rose $1.90, or 6.99 percent, to $20.07 after saying an unidentified international pharmaceutical company was willing to make an all-stock offer of $36 per share for the company. Imclone also criticized financier Carl Icahn for rejecting the bid and advised shareholders to rebuff his efforts to wrest control of the company.

XM Satellite Radio Holdings Inc. (XMSR) fell 39 cents, or 3.1 percent, to $12.19, after saying it added more than 285,000 subscribers to its satellite radio service, boosting its total base to more than 7.2 million subscribers.

Automakers received Wall Street's attention after Bear Stearns cut its rating on Ford Motor Co. (F) to "Peer Perform" from "Outperform" and upgraded rival General Motors Corp. to "Peer Perform" from "Underperform." Ford was up 6 cents at $8.29, while GM (GM), part of the Dow, was up 48 cents at $33.89.

Declining issues barely outnumbered advancers on the New York Stock Exchange, where volume came to 190.2 million shares, compared with 315.40 million traded at the same point Tuesday.

The Russell 2000 index of smaller companies was up 1.47, or 0.20 percent, at 719.82.

Overseas, Japan's Nikkei stock average closed down 0.98 percent. In afternoon trading, Britain's FTSE 100 was up 0.44 percent, Germany's DAX index was up 0.61 percent, and France's CAC-40 was up 0.53 percent.

FOXNews.com - Wall Street Bucks Negative Economy News, Stocks Rise - World Market Analysis | Financial News | Market Data | Stock Market News


Man some of the analyst predictions from 6 weeks ago are holding up nicely lets hope the current predictions turn out correct

[ballz2wallz]

What happens when it hits 12k?

[WickedLou9]

Originally Posted by ballz2wallz

What happens when it hits 12k?

nothing really except that some peoples portoflios will be up more than usual.

[6SpeedTA95]

Originally Posted by ballz2wallz

What happens when it hits 12k?

Nothing it just keeps going up hopefully

[6SpeedTA95]

Dow hits new record
Major gauges jump, with the industrials hitting a fresh all-time high and the S&P 500 hitting a 5-1/2 year high.
By Alexandra Twin, CNNMoney.com senior writer
October 4 2006: 4:26 PM EDT


NEW YORK (CNNMoney.com) -- Stocks surged Wednesday afternoon, with the Dow Jones industrial average closing at its highest point ever, the S&P 500 hitting a 5-1/2 year high and the Nasdaq composite rising more than 2 percent.

The Dow industrials (up 123.27 to 11,850.61, Charts) added 1.1 percent, according to early tallies. It hit a record trading high of 11,851.25 during the session, before closing just below that at 11,850.61.

On Tuesday, the Dow had ended the session at a record closing high, taking out the record close from January 2000.

The S&P 500 (up 16.11 to 1,350.22, Charts) index climbed 1.2 percent, closing at its highest point since Feb. 2001.

The Nasdaq composite (up 47.30 to 2,290.95, Charts) jumped 2.1 percent.

Treasury prices rose, lowering the corresponding yields; the dollar gained versus other major currencies.

Oil prices gained and gold prices fell.

Here's a look at what was moving near the close.

Wednesday's market
Stocks opened with little fanfare, but soon turned higher, as investors welcomed mixed economic news and falling Treasury yields. The stock gains increased as the session wore on.

The advance may have been attributable to "performance chasing," said David Briggs, head of equity trading at Federated Investors. He was referring to the tendency that when the major gauges take out previous highs, it can cause investors to want to pile in, for fear of missing out.

"It's amazing to me how all the bad news has disappeared," he added. "News on the weakening economy is seen as positive, because it means the Fed is done."

He said that while the momentum is positive now, investors shouldn't be surprised if there's a substantial pullback later in the fourth quarter or early next year.

The day's economic reports served to further bets that the economy is slowing, but not heading for recession, and that the Federal Reserve will not have to raise rates again. That sent bond prices rallying and the corresponding yields tumbling.

Afternoon comments from Federal Reserve chairman Ben Bernanke proved reassuring as well. Bernanke said that the housing market slowdown will cut into GDP growth both this year and next. However, he also said that continued low mortgage rates and the strong job market will help take the edge off the housing slowdown.

Dow: then and now
"It's encouraging to see the Dow hitting all-time highs," said Michael Sheldon, chief market strategist at Spencer Clarke. "It partly reflects the rotation in the market that we've seen over the last few months with large cap stocks starting to outperform small cap stocks, at least in the U.S."

He added though that odds are growing of a short-term correction or bout of profit taking kicking in, due to a variety of technical market indicators.

August factory orders were unchanged, after falling a revised 0.6 percent in the previous month. Economists surveyed by Briefing.com thought orders would fall 0.2 percent.

The Institute for Supply Management's September read on the services sector of the economy fell to 52.9, below forecasts for a drop to 56 from the 59 level hit in August.

U.S. light crude oil for November delivery rose 83 cents to $59.51 a barrel on the New York Mercantile Exchange, gaining after hitting a 7-month low on Tuesday. Oil prices had initially see-sawed following a mixed weekly oil inventories report released in the morning.

However, the turnaround in oil did not unsettle investors and instead sparked a recovery in the recently-battered oil stocks, including Exxon Mobil (up $1.20 to $66.61, Charts).

What's moving?
A variety of computer hardware, computer software and Internet shares gained, lifting the Nasdaq.

Biotech, bank, healthcare and telecom stocks gained too, supporting the broader market.

Among Dow issues, 27 out of 30 stocks gained, led by IBM (up $1.45 to $83.10, Charts), Microsoft (up $0.57 to $27.94, Charts) and Altria (up $1.26 to $76.90, Charts).

Dow stock General Motors (down $0.09 to $33.32, Charts) recovered from earlier losses, managing small gains following reports that the automaker's talks with Renault-Nissan about an alliance have been terminated.

Dow component Wal-Mart Stores (Charts) dipped after revising its September same-store sales numbers lower. Earlier in the week, the retailer said sales at stores open a year or more had risen 1.8 percent, but now it says the correct number is 1.3 percent, near the low end of the range it initially gave investors.

Another Dow stock, aluminum maker Alcoa, also declined, falling in tune with the broader selloff in metals.

COMEX gold for December delivery fell $15 to $566.50 an ounce, after slumping more than $22 yesterday.

That sent gold stocks lower, with the Amex Gold Bugs (up $2.86 to $285.53, Charts) index losing 2.6 percent.

Valero Energy (up $1.93 to $50.10, Charts) rose after saying late Tuesday that it expected to report record third-quarter earnings-per-share of $2.25 to $2.35. The range was below analysts' estimates, but investors focused on the record and pushed shares higher Wednesday.

Market breadth was positive. On the New York Stock Exchange, winners beat losers three to one on volume of 1.85 billion shares. On the Nasdaq, advancers topped decliners by more than two to one on volume of 2.23 billion shares.

Treasury prices rallied, lowering the yield on the 10-year note to 4.57 percent from 4.61 percent late Monday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar gained versus the euro and the yen.

From CNN Money

[sj23]

Guess the "war" is doing something positive.

[ballz2wallz]

Originally Posted by sj23

Guess the "war" is doing something positive.

Tax cuts, my friend.

[Scrum]

Hows the debt looking? We still gaining?

[6SpeedTA95]

Originally Posted by Scrumtralecent

Hows the debt looking? We still gaining?

Yes although in the last 3 years the deficit has been cut in half.

[Scrum]

Originally Posted by 6SpeedTA95

Yes although in the last 3 years the deficit has been cut in half.

I don't mean to derail this thread, but as a person who doesn't have a good grasp of economics, I have a couple questions.

How do we stop bleeding money when we keep cutting taxes? I know cutting spending will help, but how do we go about paying this debt off?

[6SpeedTA95]

Originally Posted by Scrumtralecent

I don't mean to derail this thread, but as a person who doesn't have a good grasp of economics, I have a couple questions.

How do we stop bleeding money when we keep cutting taxes? I know cutting spending will help, but how do we go about paying this debt off?

It comes down to fiscal restraing. I mean honestly thats exactly what it comes down to. Lower taxes stimulate growth, however, at some point law of diminishing returns will basically make tax cutting and their economic boom irrelevant. For example if you cut taxes from 10% to 5% you're not going to double your revenue off the economic expansion that it would fuel. The tax cuts bush did will and are already more than making up for themselves. However, the problem has been this administration and republicans rampant spending.

You want the deficit gone and the debt eliminated you need to pound that home via emial and phone calls to your congressmen and senators. I also think balance would help a great deal. The prescription drug deal was nothing but an attemp to buy hte votes of old people and those who want entitlements. It's not a good program, creates another bloated government organization that seeks to redistirbute wealth all the while the cost estimates continue to balloon.

Cut spending and the problem would be solved. Also if you cut spending the crowding out on the private sector lessens considerably and can further spur economic growth. I can be a win win situation but it is something that you need to phase in.

If I were in charge I'd hold social programs constant and not adjust them for inflation instead of just "cutting the budgets" this will create a gradual transition period for the markets to adjust to less government spending and more private sector spending vs the government just not spending 200 billion dollars in a quarter or whatever. The ripple affects from just cutting budgets in half can be moderately substantial so a gradual phasing down of program budgets either through inflation or inflation + another 5% a year can help and add up quickly.

Politicians buy votes with spending so I wouldn't hold my breath.

edit: hopefully that helped, it barely scratched the surface but I think I got the point accross.

[ballz2wallz]

Originally Posted by Scrumtralecent

How do we stop bleeding money when we keep cutting taxes? I know cutting spending will help, but how do we go about paying this debt off?

The past few years we've been making record tax revenues and cutting the deficit...with tax cuts.

[Scrum]

Originally Posted by ballz2wallz

The past few years we've been making record tax revenues and cutting the deficit...with tax cuts.

We are still accumulating debt. They aren't cutting the debt down, just the rate we lose money.

[Scrum]

Originally Posted by 6SpeedTA95

edit: hopefully that helped, it barely scratched the surface but I think I got the point accross.

That explained quite a bit, thanks.

[6SpeedTA95]

Originally Posted by Scrumtralecent

That explained quite a bit, thanks.

across