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Dow closes above 11,000 for first time in 18 months

Alcoa

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The Dow Jones Industrial Average of 30 blue-chip stocks closed above 11,000 today for the first time in 18 months, crossing another important psychological barrier on the road to recovery.

The Dow barely made it over the threshold, closing up less than one-tenth of 1 percent at 11,005.97, after dipping just below 11,000 moments before closing. The Dow was led upward today by aluminum giant Alcoa, which reported first-quarter earnings and said it had narrowed its losses as demand for aluminum has started to pick up a bit.

The markets were also nudged upward by news earlier today from Treasury showing that the March federal deficit is one-third what it was this time last year.

The last time the Dow closed above 11,000 was in late September 2008, when it was on its way down, not up. Since bottoming in March 2009, the Dow is up nearly 70 percent.

The Dow cracked its previously psychological barrier of 10,000 closing above that level in October last year, the first time in a year the Dow had hit five digits.

The broader S&P 500 index is closing in on 1,200, a level it hasn't hit since September 2008. The S&P 500 closed today up two-tenths of 1 percent at 1,196.48. The Dow gets all the media hype, but the S&P 500 is, well, 500 stocks instead of just 30 blue-chippers and, as such, is a better gauge of the market. Since the early-March 2009 bottom, the S&P 500 is up nearly 80 percent.

The tech-heavy Nasdaq, which is up more than 90 percent since March 2009, closed up less than two-tenths of 1 percent today, at 2,457.87.

The Dow is working to recover to its historic high of more than 14,000, hit in October 2007, when the collapse began. At 11,000, that means the Dow is about 78 percent back to where it was at its peak. And, if you didn't shuffle around your retirement investments and other portfolio holdings too much, you know that you're about 78 percent back to being whole, too.

At the same time, analysts are warning now that, despite Wall Street's recovery, now is the perfect time for a bit of a market pull-back, as investors sell into it and try to take some profits. So keep an eye on that. Smart money managers expect the markets to churn sideways for a bit.

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By Frank Ahrens  |  April 12, 2010; 4:48 PM ET
 | Tags: Business, Dow Jones Industrial Average, Equities, Investing, Nasdaq, Research and Analysis, S&P 500, Stocks and Bonds  
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Comments

Thank God for President Obama and the sensible Democratic Congress for passing policies that give the public and business sector the confidence to bring the stock market back from the lows of the late Bush Administration days. After only a year, we're finally seeing this country moving in the right direction, and for that I am grateful for our leadership for ignoring those standing in the way and promoting their special interests above the best interests of the American people. Obama '12!

Posted by: PerfectlyCromulent64 | April 12, 2010 5:31 PM | Report abuse

Thank God we have a REAL President, a REAL Congress, and a REAL Senate. No more Republicans...EVER!

Posted by: camera_eye_11 | April 12, 2010 5:37 PM | Report abuse

Thank God we have a REAL President, a REAL Congress, and a REAL Senate. No more Republicans...EVER!

Posted by: camera_eye_11 | A
==================================

Jesus........you flaming liberal/progressives ATTACK Wallstreet constantly and when Wall Street manages to cross 11,000 DESPITE the liberal/progressive fascist ATTACK.......you want to take credit ??

Please........go to hell

Posted by: allenridge | April 12, 2010 5:50 PM | Report abuse

How come we are not hearing any of this good news from Rush, Sean or that idiot Glenn Beck? Could it just be that it doesn't serve their racist agenda?

Posted by: johnstrack1 | April 12, 2010 6:00 PM | Report abuse

Depression Obama Unemployment Class of 2009

Are YOU or a Family member a Victim of the Depression Obama Unemployment class of 2009?

Membership is limited to those who HAD a job when Obama took office in January 2009, then LOST their job due to Obama’s incompetent policies and waste.

When Obama took office in January 2009, unemployment was at 7.6%. Unemployment actually skyrocketed in November immediately after Obama’s election based upon Obama’s irresponsible attacks on small business.

After a year of failed Obama policies and pork stimulus–and Obama got Congress to give him all the pork and waste he wanted-- the Obama Unemployment rate is 10%.

Thats an increase from 12 million unemployed when Obama took office to over 15 million Americans unemployed now.

But its worse than those numbers reflect because under Obama the number of LONG term unemployed those unemployed more than 6 months has skyrocketed

Now there are 6 amercians desperately seking a job for every 1 job opening. Too bad--those americans just lost the socialism obama regime jobs lottery.

EVERY time a company announces layoffs its stock price rises--under the socialist obaama regime no wonder the stock market increases.

Obama Regime--socialist failure

Posted by: praetorian-guard | April 12, 2010 6:26 PM | Report abuse

Quite predictable. When dems are in control, the US stock markets outperform foreign markets. When reps are in control, foreign markets do better than the US.
You can look it up, those are the facts.

Posted by: jos587 | April 12, 2010 6:27 PM | Report abuse

psstt.............obama regime

why not visit ANY unemployment line in dc

or better yet job fairs

and tell THEM

how great the obama regime socialism works

obama regime--socialist failure

Posted by: praetorian-guard | April 12, 2010 6:32 PM | Report abuse

A sign that preformance of the stock market bears no resemblance to the actual state of our economy but does reflect the unnataural sense of optimism people are being told is all we need for a new speculative bubble to start all on its own, called the optimistic market bubble.

Posted by: Wildthing1 | April 12, 2010 6:37 PM | Report abuse

My 401K is creeping back towards its high point, the world leaders have gathered together to discuss control of nuclear weapons, and all Americans will soon have access to health care. Why on earth would anyone vote to bring back the Republicans who'd like us to regress back to the 19th century?

Posted by: MNUSA | April 12, 2010 6:43 PM | Report abuse

"Why on earth would anyone vote to bring back the Republicans who'd like us to regress back to the 19th century?"

Why? Because the Republicans think we're stupid enough to fall for it if they repeat it loudly enough and frequently enough, and if they couch it enough in innuendo, sarcasm, and lies. And unfortunately for our country, all too often they are right...as long as they can find a 51% majority of scared/stupid/ignorant peopl,e they're in business for the next four years to ravage our economy, drive up deficits, drive out consumer rights, destroy the environment, and generally create an era of bad feelings for all but the priveliged few.

Posted by: PerfectlyCromulent64 | April 12, 2010 6:49 PM | Report abuse

When Obama took office in January 2009, unemployment was at 7.6%. Unemployment actually skyrocketed in November immediately after Obama’s election based upon Obama’s irresponsible attacks on small business.

--------------------------------------

The recession began in late 2007 - you can try to spin your way out of that fact but it will not fly.

Posted by: sr31 | April 12, 2010 6:55 PM | Report abuse

All proof that the communist takeover of the economy and the destruction of America by Kenyan Muslim terrorists is almost complete. President Obama and the socialist fascist communist terrists in the Democratic party have ruined the nation. They took the woinderful handiwork of the republicons and have restored the country to the way it was before they got ahold of it. Oh the humanity, oh the horror.

Posted by: John1263 | April 12, 2010 7:03 PM | Report abuse

OOOHHH "Socialist failure", right, thats why the stock market is going UP and unemployment is going DOWN, if thats failure, I suppose then you think that you guys think George W Bush was a resounding success. As for attacking wall street and "allenridge"'s comment about "liberals" attacking wall street and now taking credit, well
A)No one is against success, the only parts of wall street we "liberals" are against are the profiteering/Reagan/ultra-deregulation crowd, and the financial crisis has already proven that we were right on that front (not that the saving and loans crisis shouldn't have tipped you off)
B)Lets not forget that the stock market had it best decade under Clinton, a DEMOCRAT
C)The stock market is recovering, albeit slowly under Obama who is SHOCK AND HORROR a DEMOCRAT

I mean honestly the only thing you Republicans seem to be able to whine about these days is that Obama can't fix the economy as quickly as you guys were able to wreck it

Posted by: Ulasem | April 12, 2010 7:05 PM | Report abuse

For those unaware of how unemploymet works in both the way it is compiled or the way it shows up in recessions, the "unemployment rate" nonsens ethat hanity is throwing out to convine you that the economic miracle we have just seen is not real is just yet another conservative snow job. how aboutnthis - the last month of the bush administration the economy shed 750,000 jobs. It has gotten better every month since, never going back to that, and now the economy is adding jobs.

Posted by: John1263 | April 12, 2010 7:06 PM | Report abuse

When I hear people like praetorian guard talking about how the economy is getting worse, and how great things were during the Bush years, all I can think of is that joke about the guy who's wife walks in on him when he's in bed with his girlfriend - his quick thinking response? "Who're you gonna believe hon, me or your lying eyes?"

Posted by: orrg1 | April 12, 2010 7:17 PM | Report abuse

Still buying Gold and other commodities. Won't believe this one for another three years.

Posted by: ssmorehouse | April 12, 2010 7:19 PM | Report abuse

Thank God for President Obama and the sensible Democratic Congress for passing policies that give the public and business sector the confidence to bring the stock market back from the lows of the late Bush Administration days.

Er, uhmm, that market low actually occurred during President Obama's term of office. Not that I would expect your opinion to change based on something as trivial as the facts...

And, BTW, I am an Obama supporter, so you can stick that in your partisan pipe and smoke it prior to your next liberal tirade... As the President once so pithily said, "...I like to know what what I'm talking about before I say anything." Great line, that.

Posted by: pdqlmnop | April 12, 2010 7:24 PM | Report abuse

That socialist Obama has let banks tighten consumer credit making consumer use credit cards at 14% instead of loans at 6%. They for the most part have repaid TARP money. Prime has been all but free and the market tightening during the recession peak Jan. 09 has not replaced workers becoming lean and profitable. Dow above 11,000 is 1,000 away from selling AIG back and recouping all the TARP coin. Even GM wants to get from under. The Salt reductions, the Iraq drawdown and the 2 year tentative drawdown in Afghanistan can cut the military budget. A doubling of the medicare tax would pay for the boomers. A higher graduated tax on million and above (max 40% >100 million) capital gains and a 20% rate reduction for 3 year longterm gains with the first $20,000 free would help small business and curtail high end gambling, putting the budget closer to balance. Medicaid rolls must be reduced from the 50 million current to 30 million with a better economy and universal health care. More for GP/internists and less for specialists and tests should be part of a comprehensive audit to patient trail to stop fraud. The more low end care in nurse practitioners, GPs, internists, nurses, lab techs, the lower the overall costs. Wellness programs more than pay for themselves and should be part of tax code for companies and small business. The economy is starting to ratchet up with consumer spending/factory orders and home prices have stopped falling. The front end payments for the health bill will stop the forced printing of money that happened last April. Future deficits if not addressed will force the same printing of money.

Posted by: jameschirico | April 12, 2010 7:26 PM | Report abuse


Hello Dims.

Anyone who mixes politics with his investment strategy is a rube who deserves to be parted from his money.

Posted by: screwjob11 | April 12, 2010 7:45 PM | Report abuse

Do your self a favour ssmorehouse

Google
gold market manipulation and fraud

And select the news tab.

http://www.huffingtonpost.com/nathan-lewis/its-ponzimonium-in-the-go_b_519893.html

The Gold market is the latest Ponzi scheme. Just like the Credit Default Swaps (CDS) scam that created the housing bubble.

http://beforeitsnews.com/news/32124/BOMBSHELL_Whistle_Blower_Comes_Forward_With_Solid_Proof_The_Price_Of_Gold_And_Silver_Is_Being_Manipulated_By_Major_Financial_Institutions.html

The CFTC changed the bankruptcy rules for people selling gold futures recently hidden in it is protection for those selling paper Gold derivatives at leverage's of up to 100/1. It is a fractional reserve. I presume you know what that is?

The Gold futures are being used to pump the price of metals while appearing to non cognoscenti depress it, who constantly loose money on the down swings. We are talking paper trades that appear to exist but do not in reality. This allows those controlling the market to make money on both up and down swings in the market. The inflating price is bate to attract in fools.

Eventually pumping the market creates a bubble the market can no longer support, as all the folls have run out of cash, market saturation. Just before this, those pumping the market, take out a big bet the market will fail; as Goldman Sachs did with AIG and then they bail. As they did in the CDS scam. This leaves home owners with houses they took out mortgages for that are now worth half the value of the mortgage. This is called negative equity.

They are looking to do the same derivatives type of Ponzi Scheme methods on bonds too.
http://www.euronext.com/landing/landingInfo-2037-EN.html

The safest thing at the moment is straight stocks and shares, they dropped recently (hint 2008 crash) so there no bubble in the stocks and shares market; that is why they are rising, everyone who is aware is shifting to shares, it is a move to safety.

Gold on the other hand has been rising since 2008 just like housing did in the CDS bubble, this despite the fact there is no marvellous new technological use for Gold. That should tell you something; that any increase in the value is an artificial one. If you are buying and selling paper gold; as in fact they are doing, and it costs them nothing to do this and the net amount of gold that is physically moving is not rising, while the price is going up, then some one is inflating it.

Get out of gold while you can it is a bubble and it is going to blow.

Posted by: walker1 | April 12, 2010 8:01 PM | Report abuse

Jesus........you flaming liberal/progressives ATTACK Wallstreet constantly and when Wall Street manages to cross 11,000 DESPITE the liberal/progressive fascist ATTACK.......you want to take credit ??

Please........go to hell

Posted by: allenridge

~~~~~~~~~~~~~~~~~~~~~~~~~~

Awww...did I hurt your poor little old conservative, Jezuz lovin' feelings? Call a wahmbulance already.

I'd rather not go to hell because that's where Republitards like you will be.

Posted by: camera_eye_11 | April 12, 2010 8:05 PM | Report abuse

It's Obama's fault that the Dow hit 11K! Oh wait, that doesn't flow with the Hannity/Beck narrative! (self-inflicted gunshot to my head in the background)

Posted by: jabreal00 | April 12, 2010 8:12 PM | Report abuse

So many Republitards who said nothing when Bush and the GOP were raping the country and Americans financially; now they are magically financial experts and fiscally responsible.

No more Republitards...EVER!

Posted by: camera_eye_11 | April 12, 2010 8:12 PM | Report abuse

Still buying Gold and other commodities. Won't believe this one for another three years.

Posted by: ssmorehouse

~~~~~~~~~~~~~~~~~~~~~~~~~~

Why not...Glenn Beck tells everyone to invest in gold. Oh, wait, he's being paid to say that.

Posted by: camera_eye_11 | April 12, 2010 8:15 PM | Report abuse

Hello Dims.

Anyone who mixes politics with his investment strategy is a rube who deserves to be parted from his money.
==============================

Yeah. One of my coworkers came into the office after listening to Rush Limbaugh back right after Obama was sworn in office on Jan 20 2009. He said that Rush told his listeners to move their 401Ks from stock to bonds. I tried to warn my buddy, but he moved his money all because of what the GOP talking heads were saying. Since January 2009, my 401K is up 75%. I don't hear any GOPers these days complaining about the stock market dragging down their 401Ks. In case anyone is interested, the market is about 3,500 points off of its record high. Don't get your politics and your profits out of the same pot.

Posted by: jms3rd | April 12, 2010 8:20 PM | Report abuse

It must be tough to be a wingnut and have to dream up some hairbrained conspiracy theory to explains why this is bad news.

Posted by: Andrea_KC | April 12, 2010 8:32 PM | Report abuse

Tea Party members blame this all on Obama!

Posted by: matrox | April 12, 2010 8:35 PM | Report abuse

The smell of envy and frustration permeates the air for the rightwing losers.

Posted by: gopstupor | April 12, 2010 8:37 PM | Report abuse

COMMUNISM!!! Pure and simple.

Can you tell what hanity and beck and limbaugh and the rest of their clones were saying today? It's all here on the posts-- Obama caused the recession, fanny and freddy...blah blah blah....unemployment rate.....blah blah blah.......

never mention the fact that republicon ideology once again crashed the economy. Never mention that once again responsible intelligent Demcraotic initiatives pulled our nads out of the fire.....

Posted by: John1263 | April 12, 2010 9:00 PM | Report abuse

Where was the DOW when Bush left office???

Good job Obama! It's a feather in your cap - a feather that the press has ignored.

If the MSM won't sing your praises, I will. Kudos to Obama for keeping this ship of State afloat.

Just keep on plugging away at creating jobs. I have more faith in you than just about anyone else.

Posted by: kurthunt | April 12, 2010 9:07 PM | Report abuse

If you are currently buying gold, especially because glen beck told you it's a good investment, you prove the theory of evolution works briliiantly. Gold prices are going to crash within the next 3-6 months. Gold always inflates when the economy crashes, which was why prices started climbing in the bush term. What you are looking at now with gold trading close to 1,500 and ounce is a classic bubble. Gold will be back under 500 by 2011, and back down to normal 300 and ounce by 2012. And al you idjits who listened to hanity and beck will be whining and blaming President Obama for your stupidity then, too.

Posted by: John1263 | April 12, 2010 9:11 PM | Report abuse

If you are currently buying gold, especially because glen beck told you it's a good investment, you prove the theory of evolution works briliiantly. Gold prices are going to crash within the next 3-6 months. Gold always inflates when the economy crashes, which was why prices started climbing in the bush term. What you are looking at now with gold trading close to 1,500 and ounce is a classic bubble. Gold will be back under 500 by 2011, and back down to normal 300 and ounce by 2012. And al you idjits who listened to hanity and beck will be whining and blaming President Obama for your stupidity then, too.

Posted by: John1263 | April 12, 2010 9:12 PM | Report abuse

Thank you Mr. President for staying the course!

Posted by: Southsider | April 12, 2010 9:34 PM | Report abuse

Obama definitely gets credit for today. Alcoa, maker of the stuff that builds tin-foil hats, led the move over 11,000. Well done, hatters. All we need to do is add the company that makes fake press-on Hitler mustaches to the S&P 500, and the Tea Party patriots will have us setting new highs within the year.

Posted by: steveboyington | April 12, 2010 9:43 PM | Report abuse

More good news that the Tea Partiers can bemoan. The more the economy improves the stupider they look.

Posted by: exbrown | April 12, 2010 9:44 PM | Report abuse

For those with a BAD memory Obama said, when the stock market was down, "The Stock Market is not a good indicator of the economy"?

Corporations will always find a way to survive no matter what government crap is thrown upon them. Many will become more profitable with continuing layoffs. Great for the American jobless, huh?

Posted by: jblast2000 | April 12, 2010 9:59 PM | Report abuse

Socialist Kenyan Muslim death panel communist ayers acorn freddy fascist Obama! I knew he'd mess everything up!

Posted by: John1263 | April 12, 2010 10:07 PM | Report abuse

WPO will fix things up, so ratchet it up smart money managers. This is about to take off, this is a live wire. It can get sideways, it has momentum and that gets you through to the up side and there's always an upside. People are too focused on the downside and end up down. Better off ending up up and keep going that way. Could go either way. There is more security with up, so you have to be dumb to trade it down. It's my birthday, so give it a boost and make us all happy. You are smart.

Posted by: tossnokia | April 12, 2010 10:40 PM | Report abuse

You love the matter. You better you bet! What fun! Gotta go!

Posted by: tossnokia | April 12, 2010 11:51 PM | Report abuse

Aluminum cuts weight. The performance goes up and the the thing is supercharged with nitrous, so the guys at the speed shop stay busy. I'm busy putting together my plumbing and trying to figure out an injection system. I need aluminum bottles, I do know that. The thing is even faster without a passenger according to the sales people. It's looking like an expensive hobby and without a hobby man is worthless. Without aluminum man is grounded. It's like flying real close to the ground and the thing can elude law enforcement aircraft. He's gone!

The chase is fun.

Posted by: tossnokia | April 13, 2010 10:17 AM | Report abuse

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Posted by: linlinmeihua | April 14, 2010 11:30 PM | Report abuse

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