Dow hits 10K
OK, it’s finally happened so hopefully talking heads can stop obssessing about this magic number. Traders in the more esoteric spaces, like non-agency mortgage bonds, are even feeling the love. We get another round of bank earnings tomorrow, including Goldman Sachs, which if they’re anything like JP Morgan, could ignite even more euphoria in markets.
Still, the Dow needs to close above 10K for everyone to truly feel like the good times are finally here to stay. While it pierced 10K, it’s since bounced lower.
I’m still not sure I buy that any of this really matters in the grand scheme of things since it’s all coming due to the artificial support of government money. Free markets indeed. That said, it’s sure to bolster confidence and if the U.S. economy is lucky, that will be enough to keep things on stable footing. Then again, there’s that thing called the dollar that also hit another 14-month low again today.
For those who love historical stats, here’s some from S&P’s Howard Silverblatt.
March 29, 1999 first time the DJIA closed above 10,000 (10,006.78), then crossed the 11,000 on April 5, 1999 (11,014.19; 24 trading days)
October 3, 2008 last time the DJIA closed above 10,000 (10,325.38), dropped 18.15% over the next 5 days (all down)
The DJIA set a high on October 9, 2007 at 14,164.53, the same day the S&P did at 1565.15; the NASD high close was on March 27, 2000 at 4704.73