Steady Economy Briefly Drives Dow Beyond 29,000
The Dow Jones Industrial Average shot beyond the 29,000 mark for the first time ever on Friday, but it retreated slightly by the close. More importantly, new figures indicate the economy is growing steadily.
The economy created 145,000 new jobs in December and the unemployment rate remained at 3.5%, according to new figures released on Friday morning by the Bureau of Labor Statistics. Unemployment is at a 50-year low and the job-creation figure was slightly lower than expected, but fairly strong.
Earlier in the week, the Institute of Supply Management reported that the 88% of the economy outside of the manufacturing sector was performing slightly stronger than expected. The monthly survey of purchasing managers at non-manufacturing companies by ISM corresponds with an expected rate of U.S. economic growth of 2.2%, which is slightly stronger than the recent consensus forecast of economists surveyed by The Wall Street Journal.
The new milestone on the Dow Jones Industrials Average on Friday came after the Standard & Poor's 500 stock index broke a new all-time closing high on Thursday, but both indexes retreated slightly and closed the week fractionally lower than their record highs, with the S&P 500 ending the week at 3,265.35.
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. No one can predict the future of the stock market or any investment, and past performance is never a guarantee of your future results.
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