The Dow Jones reaches a new maximum of 9800 points
22 Sep
Although the fear of a correction on thursday; this Week, the Dow Jones rallied again and rose up to 9800 points. This is a new maximum. The new Bullish rally in the stock market of New York, was feed by the good perspectives of the economy and the speeches of some celebrities like Ben Bernanke, pointing that the recession is over,have boosted the market.
The speech of Bernanke was reinforced thursday with new macroeconomic data:
-Initiation of new housing: In August, the US recovered it’s levels of November with the initiation of 598000 houses, a 1,5% more than in a year before, according data from the Commerce Department
The sum is OK with the analyst’s forecasts, but further than this the market valued that this data means the return to the levels of November 08.
-Industrial activity:Also has been good the data of industrial activity in the mid-Atlantic region valued by the Fed of Philadelphia. In September rose up to 14,1 points while the forecast was 8. In August the data was 4,2 points.This is the second consecutive month with positive values after 10 months in negative.
-Unemployment demands:In the week ended on 4th September decreased by 12000 demands to 545000,which are better results than the forecast of 555.000.
However,there is prospect of a speculative Bubble, the low interest rates and the liquidity injections are feeding the market.In the US, the S&P 500 has risen nearly 60 per cent above its March low and the power of the rally has propelled the benchmark to its highest level above its 200-day moving average since May 1983.
“Not even during the great bull run of the 1990s did the S&P get this far above its 200-day,” says Justin Walters, co-founder of Bespoke Investment Group.
The Achilles heel of such growth is the consumption. If banks and other money lenders do not finance the consumer and business activity, the economy is in a serious danger.
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