Dow 12,000!

[6SpeedTA95]

NEW YORK — Strong earnings news gave Wall Street a jolt on Thursday, catapulting the Dow Jones industrial average to a new record close above 12,000.

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Based on the latest available data, the Dow Jones industrial average gained 19.13 points, or 0.16 percent, for an unofficial finish at 12,011.81 — a record closing high.

The Standard & Poor's 500 Index rose 0.94 point, or 0.07 percent, to 1,366.90. The Nasdaq Composite Index added 3.79 points, or 0.16 percent, to 2,340.94.

The rally that began in September has been in part inspired by optimism that corporate profits will be strong during the third quarter. This was behind today's rebound in Dow stocks after two of its components were cheered on by Wall Street.

Coca-Cola (KO) reported quarterly profit rose 14 percent, aided by sales in Europe due to the World Cup soccer promotions and growth in emerging markets. The results surpassed Wall Street projections.


Meanwhile, Pfizer (PFE) reported third-quarter profit more than doubled from a year ago when results were hurt by an acquisition charge.

The Russell 2000 index of smaller companies was up 4.50, or 0.59 percent, to 767.91.

Overseas, Japan's Nikkei stock average fell 0.61 percent. In afternoon trading, Britain's FTSE 100 was up 0.07 percent, Germany's DAX index was down 0.02 percent, and France's CAC-40 fell 0.12 percent.

FOXNews.com - Dow Industrials Close Above 12,000 for First Time - Business And Money | Business News | Financial News


More good news on the stock market front. This is a significant psychological barrier that we just blew through. The next significant barrier is 15,000

[6SpeedTA95]

CNNMoney.com Market Report - Oct. 19, 2006

Dow makes it to a 12,000 close
Ends above the milestone number for the first time ever as investors digest mixed corporate profits; oil up.
By Steve Hargreaves, CNNMoney.com staff writer
October 19 2006: 4:09 PM EDT


NEW YORK (CNNMoney.com) -- The Dow industrials closed above 12,000 for the first time ever Thursday as investors took in a mixed bag of earnings from leading banks, blue chips and technology companies.

The 30-share Dow (up 19.61 to 12,012.29, Charts) finished up 0.2 percent higher, according to early tallies.

The broader S&P 500 (up 0.73 to 1,366.69, Charts) index and the tech-fueled Nasdaq composite (up 1.97 to 2,339.12, Charts) ended up about 0.1 percent.

The Dow crossed the 12,000 milestone for the first time Wednesday but failed to finish above that number.

Oil prices rose nearly $1, while the dollar and bonds slipped.

Here's what moved the markets Thursday:

"Third quarter earnings have been relatively good, and the outlook optimistically cautions," said Steve Neimeth, a portfolio manager at AIG SunAmerica.

Neimeth said the S&P 500 is trading at 15 times expected earnings, a relative bargain.

"If you look at the valuation, it's just way too cheap," he said. "A lot would have to go wrong for the market to get any cheaper."

Warren West, president of Greentree Brokerage Services, said a combination of factors - including solid corporate profits, the possibility of flat or declining interest rates and a cooling of commodity prices - have all helped fuel the record-setting run on Wall Street. Wednesday the Dow closed at a record high for the eighth time in the past 11 sessions.

"The economy continues to weaken," West said. "But everyone is convinced the Federal Reserve will be able to engineer a soft landing" of slower growth and lower inflation without a recession.

Wall Streeters watch cable
Earnings news was mixed Thursday as the numbers kept rolling in. Tech stocks were volatile, with some issues swinging widely.

Apple Computer (up $4.45 to $78.98, Charts) reported earnings after the bell Wednesday that easily topped Wall Street expectations, although its guidance for the current period was a bit below forecasts. The stock jumped 6 percent in Thursday trade.

Online auction site eBay (Charts) also reported better than expected results as well and the shares also climbed about 6 percent.

But chipmaker Advance Micro Devices (down $3.11 to $21.12, Charts) posted improved earnings that fell short of forecasts and the stock skidded 11 percent.

And computer maker Dell (down $1.58 to $23.12, Charts) tumbled 6 percent after the research firm Gartner said rival Hewlett-Packard (up $0.58 to $39.59, Charts) reclaimed the top spot in global PC sales.

Banks didn't fare well either, although their stock price swings weren't as drastic.

Citigroup (down $0.38 to $49.81, Charts) reported better-than-expected earnings but revenue that fell short of forecasts. Shares of the nation's biggest bank stock fell about 1 percent.

Bank of America (down $0.46 to $53.35, Charts) saw it's stock fall more than 1 percent despite profits that topped forecasts.

In other earnings news, Coca-Cola (up $0.99 to $44.95, Charts) posted improved results. Drugmaker Pfizer (down $0.45 to $27.65, Charts) saw earnings edge past forecasts. Conglomerate Honeywell beat (down $1.07 to $41.56, Charts) estimates. And McDonald's (down $0.75 to $40.72, Charts) reported improved results that met its recently raised guidance.

Falling oil prices, strong earnings and fewer inflationary concerns helped lift the Dow above 12,000 for the first time Wednesday, although it closed just short of the benchmark.

Thursday also marks the 19-year anniversary of the October 1987 stock market crash, so-called Black Monday, the worst one-day drop in Wall Street's history. On Oct. 19 of that year the Dow tumbled 22.6 percent.

Oil prices rose Thursday after Saudi Arabia said it supports a production cut of 1 million barrels a day. OPEC is currently meeting in Vienna to discuss such a cut.

U.S. light crude gained 90 cents to $58.55 a barrel on the New York Mercantile Exchange.

Treasury prices fell, lifting the yield on the 10-year note to 4.77 percent from 4.76 percent late Wednesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar fell against both the euro and the yen.

COMEX gold closed up $9.90 at $602.50.

On the economic front, the Index of Leading Economic Indicators, a measure of future economic growth, rose 0.1 percent in September to 137.7, the index's first rise in three months. But it was still below Wall Street expectations for a 0.3 percent gain.

The Philadelphia Federal Reserve Bank said its business activity index fell to negative 0.7 in October from -0.4 in September, sharply lower than forecasts for a rise to 7 in October. A reading above zero indicates growth.

Initial jobless claims fell to 299,000 last week from 309,000 the previous week, according to the Labor Department. Economists surveyed by Briefing.com had forecast 310,000 claims.

Stocks closed mostly lower in Asia. Most indexes also finished lower in Europe as well.

Market breadth was positive. On the New York Stock Exchange, winners beat losers three to two on volume of 1.3 billion shares. On the Nasdaq market advancers topped decliners four to three as 1.6 billion shares changed hands.

[WickedLou9]

I'm voting for every GOP candidate on the ballot ! go DOW go!

[SoFlaJDM]

Originally Posted by WickedLou9

I'm voting for every GOP candidate on the ballot ! go DOW go!

it's clinton's fault!!

[6SpeedTA95]

Originally Posted by WickedLou9

I'm voting for every GOP candidate on the ballot ! go DOW go!

Can't handle the good news?

[RMNIXON]

Lets all have a huge Tax increase, gas tax, and have the Government take over a major portion of our economy with Universal Government Union run Healthcare and we can knock the shit out of those numbers and hurt the RICH!


A good many people will lose jobs and all will get stuck in a terrible heathcare system run like the DMV, but that is the sacrafice you make in a progressive world.

[sj23]

So corporate America is doing great!!!!

[6SpeedTA95]

Originally Posted by sj23

So corporate America is doing great!!!!

Depending on which of the many accounting standards you use we've had between 13 and 17 quarters of double digit earnings growth. So yes things are doing well.

[RMNIXON]

Originally Posted by sj23

So corporate America is doing great!!!!

All business great and small actually. Much of it not even reflected directly in stock (See Quote below). You know the people who do employ Americans? That 4.6% Enemployment number? Then again if the prospect of these people hurting a little while others pay the real world price so a certain political class can get their jollies chant their revolution it would be very bad news indeed!


...every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good.

Adam Smith

1776

[ballz2wallz]

Originally Posted by sj23

So corporate America is doing great!!!!

All of America is doing great!!!!

[WickedLou9]

Originally Posted by sj23

So corporate America is doing great!!!!

Actually stock prices have very little to do with how well a company is doing. It's all about perception. A stock's value is determined not by a company's profit margin but by demand for that stock, plain and simple. Generally speaking there is a corolation but they are not tied together. Often times wal street analysts will predict a certain EPS for a companies stock. If the company doesn't meet wall streets esimates, people get all pissy and sell the stock. Even if the company is chugging along just as it always had. Wall street is fickle. Stock prices go up and down for no reason. The stock market is not the economy.

[6SpeedTA95]

Originally Posted by WickedLou9

Actually stock prices have very little to do with how well a company is doing. It's all about perception. A stock's value is determined not by a company's profit margin but by demand for that stock, plain and simple. Generally speaking there is a corolation but they are not tied together. Often times wal street analysts will predict a certain EPS for a companies stock. If the company doesn't meet wall streets esimates, people get all pissy and sell the stock. Even if the company is chugging along just as it always had. Wall street is fickle. Stock prices go up and down for no reason. The stock market is not the economy.

You have some good points but saying prices have little to do with how a company is doing is just flat wrong. There's a brief time after a company goes public that how the company is doing has less to do with the price than it would of a fortune 500 company. However it still is taken into consideration as it is what affects the demand of the stock.

Again you're not wrong in your overall post but saying that it has "little" to do with it is wrong for the most part. I'd say the number one thing is investor confidence followed by how the company is doing. Those two can also be deeply inter related. The market as we all know has been surpressed despite great earnings reports for more than 4 years. Why? Well as you correctly pointed out demand for stocks was soft...but why? Investor confidence. Turmoil in the world has turned investor confidence on its head.

Good post just had to add my POV

[SICKGUY]

im not really sure what the dow hitting 12,00 even means i do know that im making the same amount of money, but gas, housing, food, and just about everything else is going up in price. im not really doing cartwheels over this news.

also, 2 months after graduating college, my wife has landed 1 job interview. its hard to convince me that our economy is setting the world on fire.

[6SpeedTA95]

Originally Posted by SICKGUY

im not really sure what the dow hitting 12,00 even means i do know that im making the same amount of money, but gas, housing, food, and just about everything else is going up in price. im not really doing cartwheels over this news.

also, 2 months after graduating college, my wife has landed 1 job interview. its hard to convince me that our economy is setting the world on fire.

Well the numbers show a different story. What'd your wife major in and where do you guys live?

These last two years have been the 2nd and 3rd best years on record for college grads. Employment is down to the mid 4% and things are humming along nicely.

[WickedLou9]

Originally Posted by 6SpeedTA95

Well the numbers show a different story. What'd your wife major in and where do you guys live?

These last two years have been the 2nd and 3rd best years on record for college grads. Employment is down to the mid 4% and things are humming along nicely.

the numbers show that the economy is slowing actually. not crashing... just slowing.

[6SpeedTA95]

Originally Posted by WickedLou9

the numbers show that the economy is slowing actually. not crashing... just slowing.

Not really, we've only had one quarter of lack luster performance, that would be the second quarter. When we get the third quarter results we'll be able to make some assumptions about whether or not its really slowing.

[WickedLou9]

Originally Posted by 6SpeedTA95

Not really, we've only had one quarter of lack luster performance, that would be the second quarter. When we get the third quarter results we'll be able to make some assumptions about whether or not its really slowing.

Honeywell sees slowing economy hurting growth - Yahoo! News
Bloomberg.com: Worldwide
Bloomberg.com: Asia
http://www.marketwatch.com/News/Stor...eid=mktw&rss=1
Growth slowing in Oct, data show - Yahoo! News
Bloomberg.com: U.K.

[6SpeedTA95]

Originally Posted by WickedLou9

Honeywell sees slowing economy hurting growth - Yahoo! News
Bloomberg.com: Worldwide
Bloomberg.com: Asia
http://www.marketwatch.com/News/Stor...eid=mktw&rss=1
Growth slowing in Oct, data show - Yahoo! News
Bloomberg.com: U.K.

And I've got a host of articles that say the opposite, the economy is fine we just hit a speed bump.

I think the economy may be slowing slightly but you can't draw conclusive opinions from one quarter worth of data and I think you'd agree with me on that.

[WickedLou9]

Originally Posted by 6SpeedTA95

And I've got a host of articles that say the opposite, the economy is fine we just hit a speed bump.

I think the economy may be slowing slightly but you can't draw conclusive opinions from one quarter worth of data and I think you'd agree with me on that.

IT's been on the news quite a bit actually. The growth that we have seen is slowing. They are calling it a soft landing.
The fed has chosen not to raise rates , what 3 times in a row now, after 17 straight increases. Proof enough for me. I'm not saying it's bad.. but the growth that you are talking about is tapering off.