Dow Hits 52-Week High, Stocks on the Rise
Continuing the previous week's momentum, stocks rose sharply this morning with the Dow industrials up 148 points from last week's closing. Commodity and commodity-stocks prices are on the rise. Presently, the Nasdaq is up 31 points or 1.48%. The S&P 500 is up 17 points or 1.6%. Stock values are expected to close high today.
Today's surge came after the decision to continue economic stimulus during the Group of Twenty's Copenhagen conference this weekend. Treasury Secretary Timothy Geithner warned "if we put on the brakes too quickly … the ultimate cost of the crisis will be greater."
While the participating governments have agreed to continue providing economic stimulus, G20 has drafted a timetable in which to gradually drop the stimulus measures, a process set to begin on January 2010.
Though the markets appear to be making strong steps toward recovery, last Friday's employment report was not promising, showing a dramatic unemployment rate of 10.3%. While it's important to continue the stimulus efforts, it seems as if there needs to be a greater effort made toward sustainable and continual job creation.