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For the first time in just over a year, the Dow Jones has traded above 10,000. The last time the Dow traded above 10,000 was October 7, 2008. It hasn’t closed above 10,000 since October 3, 2008. The lowest it has traded at since then was on March 9th when it traded at 6,547.05. The Dow is now up 53% from that point.

The increase came from earnings reports from JPMorgan Chase and Intel, both of which were upbeat. JP Morgan Chase beat expectations by reporting a $3.59 billion profit for it’s most recent quarter. It also reported a record year to date revenue. Intel also beat expectations. It reported a decline in profits, however the decline was much smaller than what was expected from the company. The report raised hopes that the final quarter of the year would be better for the computer market.

Gold also hit another all time high of $1,072 an ounce and oil rose above $75 a barrel. This all comes after the dollar continued its decline and investors put their money into commodities.

Whenever the market increases like this, it can be seen as a very good thing for the economy. However, what if its all going back to normal too quickly? I would like to see everything go back into the black as quickly as possible, but recessions typically last years and have lasting effects for even longer. The huge increase in the stock market just seems too rapid to count on.

People and analysts have been saying that we may have just found ourselves on a false recovery, but if it holds, this is a great thing for our economy and hopefully the job market will begin to pick up as people are getting accustomed to spending money again. It’s easy to see how the economy really works when you have to talk about it every day. It actually needs everyone to pitch in a bit in order to work fluidly.

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Jeremy

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