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Stock Market Ends Up Over 40000 For the First Time


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Just terrible, terrible news! Not even worth mentioning. Damn you, President Biden! 😩

(Washington Post)

Dow closes above 40,000 for the first time
Among the biggest contributors to the widely watched index’s rally over the past year have been Microsoft and Goldman Sachs.


By Aaron Gregg
May 17, 2024 at 4:03 p.m. EDT


The Dow Jones Industrial Average closed above 40,000 Friday, the first time it ended a trading session above the milestone.

The blue-chip index closed at 40,003.59, up more than 0.3 percent for the day and more than 10 percent for the week. The index had passed 40,000 briefly Thursday but fell back before the close of that day’s trading.


The market’s gains, analysts said, reflect renewed confidence that the Federal Reserve can win its inflation fight without breaking the economy, contributing to a tech-driven rally in stocks that shows little sign of slowing.

“What was once an incomprehensible level is now at our doorstep,” John Lynch, chief investment officer at Comerica Wealth Management, said in an email to The Washington Post. He added, “This achievement is a testament to the powers of capital formation, innovation, profit growth and economic resilience.”


Stocks rallied from the last quarter of 2023 and into this year before pausing its ascent in March over inflation worries. The Dow average only contains about 30 large stocks, but it remains a widely watched benchmark as one of the oldest market indexes.


Among the biggest contributors to the Dow’s rally over the past year have been Microsoft, which has gained roughly 35 percent, and Goldman Sachs with a gain of 45 percent.

Climbing past 40,000 for the first time is “a big psychological boost for the bulls,” said Chris Zaccarelli, chief investment officer at the Charlotte, N.C.-based Independent Advisor Alliance.

Round-number milestones “hold special significance in people’s hearts and minds,” he added.

Still, some analysts urged caution when buying into a market at record valuations. Zaccarelli said investors are showing a sort of “irrational exuberance,” which include the return of risky meme stock bets and more broadly fixating on good news while downplaying signs of trouble.


Those risks include the possibility that inflation stays high longer than expected, something that might lead the Fed to keep rates at their current level or even raise them.

Analysts also see some relative weakness in retail sales, which posted an increase of 4 percent in April. GlobalData retail industry analyst Neil Saunders has called the performance of the retail sector “solid but not spectacular” in recent months, pointing to softer spending in certain discretionary areas like beauty products and home improvement.

“We remain cautious about the state of the consumer, but for now, shoppers are taking various economic challenges in their stride,” Saunders said.

JPMorgan chief executive Jamie Dimon also struck a cautious tone in a Thursday interview with Bloomberg TV, saying he’s worried that “happy talk” may have blinded the stock market to the risks it faces.


“I just said stocks are very high, and I think the chances of inflation staying high or rates going up is higher than people think,” Dimon said.



But new inflation data this week showed the “core” annual inflation rate in April was 3.6 percent, the lowest year-over-year increase since 2021.

The Dow and other stock indexes have responded closely to the Fed’s interest rate moves: Markets declined steadily in 2022 as rates went up, and bounced back last year when rates reached a plateau.

The inflation report was “a breath of fresh air” for the central bank, Raymond James chief economist Eugenio Aleman said in a note to investors, because the bulk of the price increases were driven by gasoline and shelter costs. The better-than-expected report “brought back expectations of two rate cuts in 2024,” Aleman wrote.

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18 minutes ago, BarryLaverty said:

Just terrible, terrible news! Not even worth mentioning. Damn you, President Biden! 😩

(Washington Post)

Dow closes above 40,000 for the first time
Among the biggest contributors to the widely watched index’s rally over the past year have been Microsoft and Goldman Sachs.


By Aaron Gregg
May 17, 2024 at 4:03 p.m. EDT


The Dow Jones Industrial Average closed above 40,000 Friday, the first time it ended a trading session above the milestone.

The blue-chip index closed at 40,003.59, up more than 0.3 percent for the day and more than 10 percent for the week. The index had passed 40,000 briefly Thursday but fell back before the close of that day’s trading.


The market’s gains, analysts said, reflect renewed confidence that the Federal Reserve can win its inflation fight without breaking the economy, contributing to a tech-driven rally in stocks that shows little sign of slowing.

“What was once an incomprehensible level is now at our doorstep,” John Lynch, chief investment officer at Comerica Wealth Management, said in an email to The Washington Post. He added, “This achievement is a testament to the powers of capital formation, innovation, profit growth and economic resilience.”


Stocks rallied from the last quarter of 2023 and into this year before pausing its ascent in March over inflation worries. The Dow average only contains about 30 large stocks, but it remains a widely watched benchmark as one of the oldest market indexes.


Among the biggest contributors to the Dow’s rally over the past year have been Microsoft, which has gained roughly 35 percent, and Goldman Sachs with a gain of 45 percent.

Climbing past 40,000 for the first time is “a big psychological boost for the bulls,” said Chris Zaccarelli, chief investment officer at the Charlotte, N.C.-based Independent Advisor Alliance.

Round-number milestones “hold special significance in people’s hearts and minds,” he added.

Still, some analysts urged caution when buying into a market at record valuations. Zaccarelli said investors are showing a sort of “irrational exuberance,” which include the return of risky meme stock bets and more broadly fixating on good news while downplaying signs of trouble.


Those risks include the possibility that inflation stays high longer than expected, something that might lead the Fed to keep rates at their current level or even raise them.

Analysts also see some relative weakness in retail sales, which posted an increase of 4 percent in April. GlobalData retail industry analyst Neil Saunders has called the performance of the retail sector “solid but not spectacular” in recent months, pointing to softer spending in certain discretionary areas like beauty products and home improvement.

“We remain cautious about the state of the consumer, but for now, shoppers are taking various economic challenges in their stride,” Saunders said.

JPMorgan chief executive Jamie Dimon also struck a cautious tone in a Thursday interview with Bloomberg TV, saying he’s worried that “happy talk” may have blinded the stock market to the risks it faces.


“I just said stocks are very high, and I think the chances of inflation staying high or rates going up is higher than people think,” Dimon said.



But new inflation data this week showed the “core” annual inflation rate in April was 3.6 percent, the lowest year-over-year increase since 2021.

The Dow and other stock indexes have responded closely to the Fed’s interest rate moves: Markets declined steadily in 2022 as rates went up, and bounced back last year when rates reached a plateau.

The inflation report was “a breath of fresh air” for the central bank, Raymond James chief economist Eugenio Aleman said in a note to investors, because the bulk of the price increases were driven by gasoline and shelter costs. The better-than-expected report “brought back expectations of two rate cuts in 2024,” Aleman wrote.

I don’t get this. Everywhere I look, people are struggling. How is this even possible? McDonald’s is having to come up with marketing schemes because people have been priced out of a happy meal! Yet stocks are breaking records. I cannot wait for this bubble to burst. 

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25 minutes ago, Monte1076 said:

The stock market is not the only measure of a good economy, is it?

Just saying.

He tries so hard give him this bone. Reality is different. 

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3 minutes ago, Lion7000 said:

He tries so hard give him this bone. Reality is different. 

Hey, the stock market doing well generally means my 401k is doing well. That's non-liquid, though.

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1 hour ago, SmokedOut said:

I don’t get this. Everywhere I look, people are struggling. How is this even possible? McDonald’s is having to come up with marketing schemes because people have been priced out of a happy meal! Yet stocks are breaking records. I cannot wait for this bubble to burst. 

Don't forget auto sales are way down.  Car lots are full.  Car Max sales were down 27% in last quarterly report from same time as last year.  

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All I know is as long as MY stocks continue to rise and I get dividend checks, I'm fine. But it's got to be up when I retire, so I can cash out and head to my private island.....:rofl:

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3 hours ago, SmokedOut said:

I don’t get this. Everywhere I look, people are struggling. How is this even possible? McDonald’s is having to come up with marketing schemes because people have been priced out of a happy meal! Yet stocks are breaking records. I cannot wait for this bubble to burst. 

The Dow is major companies with trillions in assets. When you inflate the money those assets beat inflation everytime. Hence they are worth more money. Stocks go up.

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Stock market being up means nothing to poor folks trying to make ends meet who now pays twice as much for groceries as they did when DJT was running the show.

Stock market is a rich Republican thing not the everyday Democrat in Atlanta thing, right Barry?

Interesting you’re now using the stock market numbers as a flex for D’s.

When DJT had the market and the actual economy booming with low consumer costs across the board you weren’t talking about how impressive the stock market reports were. 

But, you gotta grab onto something, because you know living costs are through the roof, we get it.

Interest rates are terrible as compared to the Trump years, groceries are sky high, gas has been expensive since Biden got into office.

Anyone with any sense knows it’s just dumb to vote for Biden again. 
Democrats need to get out of their feelings and quit only worrying about the social issues and start worrying about issues that have a direct consequence for everyone in our nation every day. 

Dems and Dem voters run on emotion.

Republicans run on things that change our everyday lives, every American.

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