Dow Jones Hits 11,000 for the First Time Since May
Is it true? Did the Dow Jones industrial average close above the 11,000 mark for the first time in five months? I head over to my E-Trade account, where I hadn’t dared set foot for months! Yep, there’s actually some green! I am relieved and have hopes that the Federal Reserve will take more action to get the economy going again. The Dow’s 11,000 marker is a much-needed boost to this economy's very shaky environment. With home prices falling, including mine, and with most salaries either stagnant or hiring bleak, I glom onto every bit of seemingly positive news.
A weak jobs report, added to the low economic indicators in recent weeks, increase expectations that the Federal Government will announce new steps to encourage borrowing when it meets in early November. Private employers added 64,000 workers last month, as opposed to the slash in the governmental world, where 95,000 jobs were lost. The unemployment rate is holding steady at 9.6 percent.
Financial analyst, Jim Cramer, believes, “We’ve got some really positive trends worth noting. This is the hidden wealth effect and it does matter.” Cramer thinks earnings estimates are way too low for many companies, as well, including Ford, IBM, DuPont, Caterpillar and United Technologies. If that is true, and the earnings are too low, then these companies will deliver better than expected quarters, with the market raising.
It looks good, but Monday’s another day.
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