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Dow Hits Record High

posted on March 8, 2013

Friday’s labor report provided further evidence that the U.S. economy -- the world's largest -- is in relatively good shape.

The better-than-expected payroll figures gave the dollar a lift as investors speculated over whether the Federal Reserve would tighten its monetary policy sooner than previously thought.

But even as policymakers and pundits speculated on the best way to grow the economy, the bulls continued their historic run on Wall Street.

Dow Hits Record High

On the heels of a sequester that could furlough federal employees and disrupt government services, the Dow on Tuesday of this week broke a record high that was set in 2007 by nearly ninety points.

Ken Polcari, trader, O'Neil Securities Incorporated:  "You don't see the champagne bottles and the confetti coming down from the ceiling and the balloons and all that because there is still a very very big disconnect from what the market is telling us and what the economy is telling us, right. Last time we made these highs back in pre-crash in 2007 there was 4.6-7% unemployment, jobs were being created, housing was very stable. People felt better about the economy. They felt better about their positions in life, right. Today it's a very different landscape." 

Tuesday's gains were driven by industrial and technology stocks. It’s considered a sign that investors are optimistic about the economy, since those companies stand to gain the most when the economy recovers. More stable, conservative stocks like utilities and consumer staples logged smaller gains.

Tags: broke record budget consumers Dow Dow Jones Industrial Average economy furloughs sequester stock market Wall Street