Dow closes at new all-time high
A look record-setting market day
- Duration 14:19
- Date Mar 5, 2013
A look record-setting market day
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Well -- -- we have a brand alive the Dow Jones industrials it has never been higher than where it is closing today.
They've got -- -- across dignity suffice it to say when all is said and done.
The Dow Jones industrials will eclipse the record scored more than five years ago under a different president under different times.
A market that is scratched and clawed its way back to this time and this moment.
Let's see where we stand right now because those -- these numbers are not yet officially will -- In the next few minutes but the Dow up about a percent today make it about 9%.
-- today out the NASDAQ which despite its better than 1% climb today is a long way from where it was at its all time high in early march.
2000 so don't hold your breath waiting for that when you -- Wanna hold your breath over the S&P 500.
-- its gains today it is less than 2% from its all time highs let's take a look at the drivers all of this.
You -- put it on a credit card and American Express card because that was driving a lot of this today.
The finance as a key reason why ironically a key reason why we.
In a debacle that was then this is now take a look at some of the other contributors including Bank of America.
And -- attacker with a big restructuring going on AG.
-- with a big friend of government going on and bodies -- a company that benefited when times are down because.
If this was making you feel like you were on drugs you could always well rely on -- let's take a look at the particulars here at 141000.
And a gain of about a 126 points the Dow as I said is now up.
North of 9%.
On the year let's take a look at where we -- to get to where we all war and again the all time high that would.
Reached on October ninth 2007 when -- at 14100160.
Force shortly there after.
Of course came be a great housing bust that turned into -- housing meltdown that -- -- two financial meltdown.
That turned into a banking meltdown that turns into rescues and rescues for rescues.
And stimulus on top of stimulus and trillions in federal aid including.
But no less and Ben Bernanke providing.
The tonic that to this guy has benefited not only the markets but particularly this actor.
Of the markets take a look.
At the financials big beneficiaries of all that -- From Uncle Sam so never let it be said that this bastion of capitalism.
You know begrudge him a -- and now and then.
Even if it's a big hand you and I had to say.
In how they surged on the year up appreciably across the board.
Tech stocks beneficiaries the last time of the rally that brought us to a record.
A little -- less of a player this go around let's take a look at the up.
Tech stocks if we -- otherwise you could take my we're report.
The advance that we have seen pretty much mirrors what we've seen in other sectors it back to the S&P 500 of all the ten major groups.
That are chronicled they are.
All all all ten are up now we're looking in the within the technology.
Average -- the stocks that compose it.
Apple of course one of the bigger sell offs even though it rebounded today it is down appreciably this year.
Amid questions that it can't keep this up.
We shall -- but we are all over this from all angles.
So we're Sanders met in New York on what got us here veteran trader Teddy Weisberg at the big board on whether we stay here Permanente in an Atlanta.
On why higher taxes aren't gonna keep us here.
And market budgets and look at the Dallas who warrants to buy into this rally you could be making the mistake of your life here.
Summer is screaming it is back at the closing bell today the Dow are at the opening bell I should say we sailed right past.
That all time high of 14100164.
That was the record set back in October.
A ninth 2007.
And we stayed there all day.
We now have more official numbers -- the clothes were looking at fourteen to 54 for the Dow a gain of a hundred point six points in the session.
Now that is off the highs of the day but still and -- To set that new record high hit -- with the tale of two technology stocks over the last five years that got us here IBM for example.
This has added a thousand points.
Alone to the Dow over the last five and a half years that's been the biggest winning stock for the Dow Hewlett-Packard.
The biggest ladder over that time period.
And as of today the Dow has now reached the 54%.
Loss that it suffered in the little 20072009.
Bear market that you just showed.
The big question now of course for traders can't -- hold on to these gains in the face of investor fears over the impact of all these federal spending cuts.
That kicked in on Friday for Ted he'll have more on that but meanwhile fed -- bad -- -- Bernanke saying that the sequester triggered cuts.
They could at least cut half a percentage point from -- their -- GDP.
There's concerns as we sit at all time highs about that some -- even saying it was the Fed in the first place who helped pushed -- -- to a record.
Interest rates of course still at record lows thanks -- the Fed's bond buying program.
That helps stimulate borrowing and job creating.
And me -- today the yield on the ten year US treasury note while the Dow hit an all time high was at one point 89.
Per cent and -- -- -- wrap this up at five the stocks in the Dow Jones Industrial Average we know it now no hit all time highs today three and the travelers.
Home Depot Johnson & Johnson.
And Walt Disney there you have it.
What does that -- all right thank you very much senator you -- talking about.
The yield on the ten year note to yield for example it's -- five -- a little north.
-- 2% the bullish argument goes will.
Why would you park your money in -- treasury.
And get back out of a paltry -- when you could and we conservatively move it in at worst be looking at a 2%.
You applause on the S&P 500 that's why they pay attention it's of that but essentially a senator pointed out.
The Dow was back to where was more than.
Five years ago after reaching that milestone in it actually been cut in half over the next two years is another storm -- The -- seniors Sarah you know you have a good day over there.
Sort of -- created Teddy Weisberg Teddy you've seen a number of bubble and bear markets alike.
Obvious line of punctuated rather precisely today but the record.
Tells you that you know records aren't sustain for very long they go through I picked up things when you envisioning here.
Well -- it's it's obviously they don't it was a crystal ball -- And if you go back to 2000.
Basically were already in place and if you go back to the -- -- love march of of 2009.
Take American Express for example that stock -- -- -- met before the market sold off at around 65 dollars a share.
And here we -- Up from the trading -- at 656 had -- get beyond the -- and -- stock is back at 64 dollars.
So for a lot of folks were big gets ready in place of course in the interim we've had this dramatic sell off of a -- -- or nine.
And now the great rally we've just got his back to the trading levels that not only of late 07 -- but you can draw the line all the way back to 2000.
I'm wondering if you're a regular -- hearing this watching fox right now watching the coverage in this analogy I gotta get him.
The -- gets individual investors is that -- -- to the party and there are also.
Late late so the club so what happens now what do you see about money just sits on the sidelines with a more inclined to follow.
Well you know some -- just sacked Brady has psychological -- and this -- always been the case and I suspect.
You know that they had the financial headline news is gonna get more more the attention of -- the public investors.
And and not only the public invested but also institutional investors.
And and we do know that -- tadic case still on the sidelines plus.
Let's see open wounds from 2008 and nine I still quite open for a lot of folks.
Aren't aren't limited if -- if not not mean zero interest rate environment which have which the chairman gets reinforced a couple of days ago and his testimony in that.
To the Fed.
We'll continue indefinitely.
And so I think that there's -- reason people who are basically.
Conservative and don't want to take on the risk are almost be forced to take on the risk.
But they see no alternative and that's -- -- -- sidelines that comes into the -- into the marketplace.
-- -- fundamentally there's not a whole lot to get excited about right now but you can't fight the tape and the tape.
Certainly looks like the market wants to go higher.
Indeed you cannot fight to take Teddy whispered thank you very much of the New York.
Stock exchange with stock prices and home prices to think about it there that it had joined a debt but is that hit broken Herman Cain knows.
Herman Cain with -- us right now we got indications today that home prices continued their advance it's a bumpy advance it's a close to 10% advance off.
Ridiculous clothes I know but many years saying housing first stocks later much has it was housing that -- that -- picked up and then.
The stock market sell off the trend is going to be stocks friend you say not so -- It's.
Not so fast team a savage and here's why.
They didn't report how low was low when they talked about the increase in -- housing secondly.
Wall Street might be celebrating.
About this new high that's a good thing.
Main street is not feeling -- Because Wall Street reflects the professional investors the professional traders.
And the Dow and the S&P reflects primarily the big companies now remember.
Have -- more room to tighten the belt and squeeze out more productivity.
You have a lot of main street smaller businesses.
They don't have that flexibility and B&S two other things that I think contributes to what you'll see number one.
It's -- -- high.
And the desire on the part of people who own homes.
To get rid of them is steel high.
So they are not set -- off because the -- used to see it as.
The bar you see it as they -- is market the sellers they are just trying to get rid of -- hit eight.
In some of these markets.
Well you know markets famously -- well aware I guess the same could be said these days of housing.
And that you have to bounce back from a ridiculous low.
To start bouncing back and maybe housing hasn't navy housing well and -- you said about these companies big ones included that are.
That are trying to sort of right they're shipped and and move forward -- -- but the averages are what the averages are in the end result is what the end result says.
-- no doubt this president can come out and crow about a market that has doubled under his stewardship.
And from the lows of march 2009.
Have come roaring back is he right to do that where do you would fix the credit.
No he is not right to do that because remember.
The last quarter of last year had an -- GDP growth of zero point.
Which was read bats.
Expectation for GDP growth in their last three years has not been met now the expectation -- some economists.
Is that the GDP growth is going to be 1% about it.
Some people saying it's not gonna hit -- so until you can crow about.
How the GDP growth is now giving above 2% consistently.
You don't have anything to crow about we shall watch a close.
Herman always good seeing him in -- Turning tail and hot laps.
Aren't you know what -- wonder what drives market rallies and a lot of it has to do with taking cancel the sidelines he probably -- the president gazillion times.
Well a lot of -- -- -- come off the sidelines -- companies of -- back with their own cast their own stock.
Now back to be favorable for the individual company's shareholders involved.
But is it really a constructive development not many will argue that it's at least the first of many both sides to market -- -- -- -- And Fox Business Network Melissa bullets and.
You know I don't know about that I don't see a lot of bullish signs and a lot of us I don't want to rain on anyone's parade but if you compare.
Different factors when the market was here before you look at the Fed's balance sheet was less than a trillion dollars it's now more than three trillion dollars.
You look at dead as a percentage of GDP was 38% is now 74% to me that means.
We have spent a lot of money.
Taxpayer money to repel the market to this high and what -- we achieved certainly not employment I mean employment back then was six point seven million people unemployment.
Unemployment now thirteen point two million and what happens when the Fed gets out.
But why take it all away -- that's your biggest concerns because soon -- that happens.
You can get certainly stock buybacks the body gets a lot about and that's a -- -- into -- -- -- it's it's over yet so what do you.
Now I can go -- for a long time but that doesn't mean it's still -- right recipe I mean look at what's -- we've got a lot of merger and acquisition activity.
That costs jobs that doesn't create jobs share buybacks generally cost jobs they don't create jobs.
Then you look at what else is going on -- consumer they've got the payroll tax that has kicked again.
They've got all sorts of other taxes that are kick in higher food prices there handwriting on -- and the consumer -- we've -- that's even packages within.
Well I think paper stocks that we can we can push a little higher here comedy kind of edgy but it.
Well I think we can go up another five or 6% -- it sixteen times earnings we're gonna start to see the.
You're gonna hire you agree that -- -- I think that the market continues to climb until we see unemployment go down a six point 5% because everybody is just keying off what Ben Bernanke is doing and you tell -- that corporate buybacks.
And -- companies felt good about the economy if the market was really.
A harbinger what's to come they would be investing that money not giving it back or.