Dow Jones av­er­age passes 22,000 for first time

Mar­ket surges be­hind big prof­its, low in­ter­est rates, global econ­omy.

Austin American-Statesman - - BUSINESS - By Thomas Heath and Alex Schiffer The Wash­ing­ton Post Dow

The Dow Jones in­dus­trial av­er­age roared above 22,000 for the first time in his­tory Wed­nes­day, pro­pelled for the past four months by aero­space gi­ant Boe­ing and a pop this week from Ap­ple.

One of the long­est bull mar­kets in his­tory con­tin­ues, cour­tesy of ro­bust prof­its, low in­ter­est rates and rare global align­ment of de­vel­oped economies all in good health at the same time. Those gains come while Europe and the U.S. economies con­tinue to grow at 2 per­cent, which many be­lieve is too low to lift liv­ing stan­dards.

More than 70 per­cent of the Stan­dard & Poor’s 500-stock com­pa­nies re­port­ing this quar­ter have bet­tered last year’s num­ber by 10 per­cent or more and have beaten Wall Street pre­dic­tions.

“It’s re­ally sim­ple,” said Jamie Cox, man­ag­ing part­ner at Har­ris Fi­nan­cial Group in Rich­mond, Vir­ginia. “Earn­ings drive stocks. The path of earn­ings is up­ward right now.”

Michael Farr, a Wash­ing­ton in­vest­ment man­ager said the Dow’s 22,000 mark “should be cel­e­brated. It her­alds the suc­cess of the Amer­i­can econ­omy.”

“But,” he con­tin­ued, “the in­di­vid­ual in­vestor should re­mem­ber that the rule is buy low and sell high. This is not low. Mar­ket’s don’t say high forever. This will come down.”

The Dow in­dex, com­prised of 30 ma­jor U.S. com­pa­nies, has

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