After the Dow's surge to an all time high yesterday, March 5th, The Dow continues its climb to finish at 14,296.36 or 0.3% gaining 42.47 points while S&P 500 gains .1% at 1,541.46 on 4:00 PM in New York.
For the first time since 2007, The Dow Jones Industrial Average (INDU) has reached new heights, finally overlapping the losses during the financial crisis. It is early 2013 and so far S&P 500 has gained 8% while the Dow tops at 9%.
Optimism among investors and analysts include the Fed's continuous stimulus measures which made stocks more attractive while also pushing interests rates down. It seems like the Economy is definitely advancing and according to Ben Bernanke, assets will continue to be bought by Central Banks even as the economy improves. This signals a sigh of relief as it closes slight worries among analysts. Not only is the economy steadily maintains its growth, confidence among consumers as well. ADP Research Institute figures shows an increase in employment with companies adding 198,000 jobs in the month of February following a revised 215,000 gain the previous month. This growth in jobs will contribute as a further addition for a stimuli in the economy. On a side note, some have speculated that all is not to be taken into serious acknowledgement. Bill Stone the Chief Investment Strategist for PNC Wealth Management have stated, "There is some concern that it's precarious because we've come so far so fast...There's more and more confidence that the economy is on firmer footing, It's not growing fast, but it's not about to fall off a cliff either." So what is the primary force driving these values up? Barry Knapp of U.S. Equity Strategy at Barclays Plc in New York have said that it is due to Fed policy. He has stated over phone that no one should ever worry for the Feds to pull off the stimulus measures much earlier as they are still needed for economic recovery. According to Knapp, the prime concern is the sluggish growth and fiscal contractions in addition to investors being overly optimistic of the housing market.
Overall, the volatility of the Stock Market seems to have slightly smooth-en up despite the 2012-2013 Fiscal Deal pouring concerns on Economists. Image Courtesy:Washington PostSource:Bloomberg,CNN,