Dow Jones average passes 22,000 for first time
Market surges behind big profits, low interest rates, global economy.
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