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Dow Climbs to Highest Level on Central Bank Optimism

*from www.bloomberg.com, Mar. 5, 2013 (To view original article click here.)

Take Away #1: The Dow Jones Industrial Average (INDU) climbed to a record, erasing losses from financial crisis.

Key Facts and Figures:

  • Dow Jones surges as China vowed to maintain its growth target and investors bet central banks will continue stimulus measures.
  • 28 out of 30 stocks in the Dow advanced and all 10 groups in the S&P 500 Index rose.
  • The Dow rose 146.12 points, or 1%, to 14,273.94 at 11:26 a.m. in New York, surpassing previous closing high of 14,164.53.
  • The Dow also topped its previous intraday peak of 14,198.1 from Oct. 11, 2007.
  • The S&P 500 added 1.1% to 1,541.87 today.

Take Away #2: The bull market in U.S. equities enters its fifth year this month.

Key Facts and Figures:

  • Of the current bull market, Laszlo Birinyi, President of Birinyi Associates says, “It’s not going to come back, you’ve missed the train, and the train still has a long way to go. But you better get on it.”
  • The S&P 500 has surged 128% from a 12-year low in 2009.
  • The Dow’s valuation remains 20% less than the price-earnings ratio at the previous peak and 15%

Take Away #3: U.S. stock indexes advanced this week amid optimism the Fed will maintain stimulus measures and China’s pledge to support growth.

Key Facts and Figures:

  • Fed Vice Chairman Janet Yellen said, “U.S. central banks should press on with $85 billion in monthly bond buying…”
  • China pledged to support economic expansion and will keep its growth target at 7.5% for this year and plans a 10% jump in fiscal spending.
  • The ISM index of U.S. non-manufacturing businesses rose to 56% in February from the prior month’s 55.2%.

Take Away #4: Services are a much larger part of economies now than the manufacturing sector.

Key Facts and Figures:

  • United Technologies Corp., Cisco Systems Inc., and Hewlett Packard Co. gaied the most in the Dow, rising at least 2.3%.
  • Industrial, technology, and financial companies added the most among the 10 groups in the S&P 500, advancing at least 1.3%.
  • Investors bought companies tied to economic growth, sending the Morgan Stanley Cycical Index up 1.7% to an all-time high.
  • The Dow Jones Transportation Average also climbed to a record, adding 1.4%.

Take Away #5: The VIX falls close to its lowest level since April 2007.

Key Facts and Figures:

  • The VIX fell for the third straight day, losing 5.1%

*To view original article from www.bloomberg.com click here.

Filed in: Latest, Markets

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