The Dow Jones industrial average on Tuesday reclaimed the last of the ground it held before the carnage of the Great Recession %u2014 bailouts, bank failures, layoffs by the million and a stock market plunge that cut retirement savings in half. The Dow closed above 13,000 for the first time since May 19, 2008, almost four months before the fall of the Lehman Brothers investment bank triggered the worst of the financial crisis.
Wicked winter weather played havoc with the government's employment situation resulting in an inconclusive jobs report on Friday. Still, stocks ended the week higher. But how much longer can stocks continue to gain?
The toy retailer's holiday hiring spree will exceed the number of employees it has added to its payroll in each of the last three holiday seasons. But Toys R Us' CEO was quick to note that the company is "not projecting a dramatic increase in the [economic] environment."
A surprise plunge in consumer confidence sent U.S. stocks to the year's lowest close, with the blue-chip Dow down well below 10,000. Again. With the report coming after bad news in Asia and Europe, U.S. equities never had a chance.
If Dow 10,000 really is a key psychological level, then traders best call their shrinks. The major averages, already on a four-week losing streak, face anxiety over the Euroland debt debacles and waning earnings momentum. In other words, brace yourself for Dow 9,000 and change.
