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Dow Soars to New Closing High of 11,727

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Amianthus:
Oct 3, 4:08 PM (ET)

By ELLEN SIMON
NEW YORK (AP) - The Dow Jones industrial average surged past its all-time trading high of 11,750.28 Tuesday, taking yet another step in its recovery from seven years of market turmoil. The index of 30 blue chip stocks fell back in later trading but still managed to achieve a record high close.

The Dow moved into uncharted territory in early afternoon and climbed as high as 11,758.95 before falling back. According to preliminary calculations, it closed at 11,727.34, eclipsing the the previous close of 11,722.98. Both records were set on Jan. 14, 2000.

While investors welcomed the Dow's latest achievement, it comes at a time the stock market is more conservative, even more muted, than the Wall Street of early 2000. Then, investors were still piling exuberantly into high-tech stocks. In 2006, the market's gains come only after investors' careful parsing of economic data and corporate earnings reports.

Tuesday's advance came on the second straight day that oil prices fell sharply, helping to calm fears about inflation and possible interest rate increases. But the market as a whole has been choppy, with traditionally defensive sectors such as pharmaceuticals and utilities leading the market higher since its May and June decline, said Doug Johnston, head of U.S. trading at Adams Harkness in Boston.

"I think we break out to the all-time high, then we could get a blow-off correction off of that," Johnston said.

The Dow, whose well-known large-cap stocks include aluminum producer Alcoa Inc. (AA), discount retailer Wal-Mart Stores Inc. (WMT) and the Walt Disney Co., has recovered ahead of the broader Standard & Poor's 500 and the Nasdaq composite index, which also peaked in early 2000. Those indexes were inflated - overinflated in the case of the Nasdaq - by the dot-com bubble.

The S&P 500's high close was 1,527.46, and the index remains more than 12 percent away from that milestone. The Nasdaq is even farther off its highs and no one expects it to eclipse its record of 5,048.62 any time soon.

To reach new highs, the Dow had to recover not only from the high-tech collapse, but also recession and the effects of the Sept. 11, 2001, terror attacks. The stock market was further shaken by corporate scandals at companies including Enron Corp. and WorldCom Inc., and the Dow sank to a five-year closing low of 7,286.27 on Oct. 9, 2002, nearly 38 percent off its record high close.

The market's recovery was helped by more than four years of solid corporate profit growth, and more recently, the Federal Reserve's decision to halt its more than two-year string of interest rate hikes.
http://apnews.myway.com//article/20061003/D8KHC6M00.html

larry:
The Dow to soar to an all time high at this time does not make economic sense. The housing market is in recession, American auto makers are loosing billions of dollars every quater and are downsizing and the trade deficit continues to spiral out of control and the U.S. spending two-billion dollars a month on Iraq and Afghanistan.

There is only one explination for the dow. The mine is being salted to create some favorable economic news for the Bush' coalition. The money being poored into the Dow is coming from the oil companies. The oil companies made several trillion dollars over the past six months. Now the money squeezed out of Americans by price fixing gas, is being reinvested through a maze of money laundering store fronts.

A conspiracy between the Bush Administration and oil companies to mislead the public, by salting the Dow, makes sense. Its not the first time the Bush team has created news and circumstance in an effort to fool the general public.

Amianthus:

--- Quote from: larry on October 03, 2006, 09:46:24 PM ---There is only one explination for the dow.

--- End quote ---

And in the real world, we can see that it's been steadily rising for years.

larry:
Yes it has, corporations are getting richer and America is going broke. The deficit is the result of corporate plundering. Wall Street is the fox in the hen house.

Amianthus:

--- Quote from: larry on October 03, 2006, 10:08:05 PM ---Yes it has, corporations are getting richer and America is going broke.

--- End quote ---

Most investments (in terms of dollars) are linked to the middle class.


--- Quote from: larry on October 03, 2006, 10:08:05 PM ---The deficit is the result of corporate plundering. Wall Street is the fox in the hen house.

--- End quote ---

No, it's a result of Congress spending more than they take in.

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