14,253.77: Dow Rallies, Finishing In Record Territory
Update at 4:09 p.m. ET. A New Record:
The Dow Industrials finished in record territory today. Gaining 89 points, it closed at 14,253.77, its highest level since Oct. 9,2007.
That is, the Dow has recovered all the losses it suffered during the Great Recession.
"It really does represent an achievement that we have climbed out of this crater," Jack Ablin, chief investment officer at Chicago's BMO Private Bank, told The Wall Street Journal.
Before you take too much joy out of this, we'll point you to our friends at the Planet Money blog.
Jacob Goldstein writes that if you adjust for inflation, this isn't really a record "in any meaningful sense."
"It would need to rise another 10 percent or so to hit an all time high in real (i.e. inflation-adjusted) terms," Jacob writes.
Our Original Post Continues:
The number to keep an eye on today:
That's the Dow Jones industrial average's record high close, set on Oct. 9, 2007, and we're watching as it again flirts with that milestone.
The Wall Street Journal's MarketBeat blog writes that "Happy Days Are Here Again." The Dow, it says:
"Still has to close above 14164 for it to be 'official,' but it's a notable achievement nonetheless. The stock market has been on a wild ride. The Dow fell 53% from 2007 through the market's low point on March 9, 2009, of 6547, with the vast majority of that coming after the September 2008 crash. Nearly four years to the day from that low, the Dow has rebounded 116%."
Fueling this morning's rise: "China vowed to maintain its growth target and investors bet central banks will continue stimulus measures," according to Bloomberg News.
We'll report back about the closing numbers.
Update at 12:40 p.m. ET. Planet Money's Buzz Kill.
Our friend Jacob Goldstein points out that:
"After adjusting for inflation, the Dow was higher in 2000 than it is today. It was also higher in 2007. It would need to rise another 10 percent or so to hit an all time high in real (i.e. inflation-adjusted) terms."