Stocks Close Above 10,000

Friday, November 06, 2009

A drop in unemployment claims and an upbeat forecast from Cisco Systems gave investors new reason to be optimistic about the economy and sent stocks to big gains. The Dow Jones industrial average jumped 200-plus points Thursday closing above 10,000, while the Nasdaq composite index gained more than 2 percent after Cisco, the maker of computer-networking gear, predicted its revenue would grow.

Posted by Manypaths at 08:45 AM | 67 COMMENTS | permalink | Comment on This Entry

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Manypaths

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Bush' fault?

correct?

#1 | Posted by nanc at 2009-11-05 05:23 PM | Reply | Flag:

Meanwhile, the foundation under the economy continues to rot away. A great read that reminds me of the times we are living in: "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay. It's a classic.

#2 | Posted by Ray at 2009-11-05 05:28 PM | Reply | Flag:

Good news.

Ray, how low do you think Dow will reach now? Want to reasses your under 2K prediction?

#3 | Posted by andyuhenet at 2009-11-05 05:34 PM | Reply | Flag:

This is all bad news.

The right.

#4 | Posted by Roy_Batty at 2009-11-05 05:37 PM | Reply | Flag:

Stocks soar! Back to where they were two weeks ago.

Great story. Very newsworthy.

#5 | Posted by JOE at 2009-11-05 05:46 PM | Reply | Flag:

Got another offer out today. DW/BI Architect.

have billed about 200k in the last 8 weeks.

#6 | Posted by Manypaths at 2009-11-05 05:52 PM | Reply | Flag:

Good news.
Ray, how low do you think Dow will reach now? Want to reasses your under 2K prediction?
#3 | Posted by andyuhenet

No, it's not good news. The imbalances in our economy are worse than ever. That means the next correction will be worse when the effects of Bernanke's magic money wear out.

I have reassesed my 1400 prediction. When the bankrupties, the unemployment, and the foreclosures reach a critical mass, the next breakdown will be much more devastating than a mere drop to 1400.

Again and again, I tell you. It is impossible to borrow and spend your way out of a problem caused by too much borrowing and spending. It only makes matters worse.

#7 | Posted by Ray at 2009-11-05 06:01 PM | Reply | Flag:

Wasn't this posted in mid-October?

#8 | Posted by rightisright at 2009-11-05 06:02 PM | Reply | Flag:

I have reassesed my 1400 prediction.
....
#7 | Posted by Ray

Bwahahahahahahahahahahahahahah ahaha.

p.s. Bwahahahahahahahahahaha.

#9 | Posted by nullifidian at 2009-11-05 06:04 PM | Reply | Flag:

"the next breakdown will be much more devastating than a mere drop to 1400."

Priceless.

#10 | Posted by LetUsPrey at 2009-11-05 06:17 PM | Reply | Flag:

BFD...It went to 14k under Bush and then the Dem's gained control of Congress and tanked the entire economy...

#11 | Posted by American1st at 2009-11-05 06:21 PM | Reply | Flag:

Very newsworthy.

Boo hoo award.

#12 | Posted by JimmyWallback at 2009-11-05 07:02 PM | Reply | Flag:

Dem's gained control of Congress

How many bills did the Dems pass that Bush vetoed and the Dems overrode?

#13 | Posted by JimmyWallback at 2009-11-05 07:03 PM | Reply | Flag:

AmericaFails1st doesn't know what "control" means.

#14 | Posted by LetUsPrey at 2009-11-05 07:23 PM | Reply | Flag:

#10 | POSTED BY LETUSPREY AT 2009-11-05 06:17 PM | REPLY | FLAG: Living in an illusion.

#15 | Posted by Ray at 2009-11-05 08:24 PM | Reply | Flag:

What do you put on gold when you eat it? Butter? Jam? Inquiring minds want to know.

#16 | Posted by LetUsPrey at 2009-11-05 08:36 PM | Reply | Flag:

I am sure one day Ray will go to the hardware store and buy Him a couple bastard files and file down His gold to place on His morning cereal. Call it garnish.

Larry

#17 | Posted by LarryMohr at 2009-11-05 08:43 PM | Reply | Flag:

Ray is still making market predictions?

That's just too funny..........

#18 | Posted by Manypaths at 2009-11-05 08:45 PM | Reply | Flag:

It's hilarious. You sheep are getting fleeced on a scaled unparalleled in human history. And you're celebrating! LOL!

#19 | Posted by Ray at 2009-11-05 08:55 PM | Reply | Flag:

Ray. I've heard it said there are 3 kinds of people.

Those that make things happen, those that discuss what happened, and those that ask wtf just happened.

The lions share of this site are in the last group, I'm afraid.

#20 | Posted by Washboard at 2009-11-05 09:15 PM | Reply | Flag:

The lions share of this site are in the last group, I'm afraid.

Without question.

Washboard, you know the Fed is running a massive worldwide Ponzi Scheme. The simplest unassailable logic doesn't register in their blank minds. As long as the money is flowing they rather play like the grasshopper in the Aesop's Fable of the Grasshopper and the Ant.

#21 | Posted by Ray at 2009-11-05 09:30 PM | Reply | Flag:

You guys make things happen, right?

#22 | Posted by andyuhenet at 2009-11-05 10:29 PM | Reply | Flag:

This morning, the BLS announced that unemployment, for the first time since 1983, broke 10% at 10.2%. These numbers only count the unemployed within a six month time frame. Total unemployment is over 20%, clearly in the Depression category. This is a classic case of trusting the fox to count the chickens.

Coincidences like this don't happen by chance. This looks like the MO of the Plunge Protection Team. Yesterday, the Dow broke 10,000 again, just the day before double digit unemployment statistics were scheduled to hit the headlines. The euphoria over 10,000 was meant to mitigate the expected strong negative reaction in the markets today. It should be an interesting day.

#23 | Posted by Ray at 2009-11-06 08:56 AM | Reply | Flag:

I have reassesed my 1400 prediction. When the bankrupties, the unemployment, and the foreclosures reach a critical mass, the next breakdown will be much more devastating than a mere drop to 1400.

#7 | Posted by Ray

Aye!

Smoke and mirrors.

There is the yearly ramp-up for Christmas shopping madness, though this is predicted to be tepid at best. This will have a small effect on stocks and such. Though there will not be the large hiring of the additional seasonal workers, many stores opting instead to use current workers and offering overtime/extended hours.

Unemployment, though there has been a small dip, will continue to rise. This will be compounded by the smaller defense budget and the slashing or elimination of many military programs, which will cause large RIFs and dumping 10s of thousands of contractors into the unemployment line. And where will these folks find work?

It ain't over by a long shot.

#24 | Posted by ZOT at 2009-11-06 08:56 AM | Reply | Flag:

10.2% Unemployment!!!

Fiction lags reality.

#25 | Posted by aclusux at 2009-11-06 09:12 AM | Reply | Flag:

Futures have us opening at 9920.

But that's fine. When we cross 10,000 again--maybe today, maybe next week, maybe next decade--we can recycle the headline again.

#26 | Posted by rightisright at 2009-11-06 09:17 AM | Reply | Flag:

#21
"you know the Fed is running a worldwide Ponzi Scheme."
Time for a public audit

#27 | Posted by igmoramus at 2009-11-06 09:32 AM | Reply | Flag:

Bernanke is giving out free money to a select few who pour it into the stock market. That's what he calls an economic recovery. Wow, give everyone that money or fire the SOB.

#28 | Posted by nutcase at 2009-11-06 09:45 AM | Reply | Flag:

OOOOOPS!----unemployment over 10%---all this means is the money printing machine will continue to working overtime.

#29 | Posted by matsop at 2009-11-06 09:46 AM | Reply | Flag:

Time for a public audit
#27 | POSTED BY IGMORAMUS

Ain't gonna happen. As I expected, they gutted Ron Paul's audit bill.

#30 | Posted by Ray at 2009-11-06 09:54 AM | Reply | Flag:

JOBLESS. RECOVERY. OXYMORON.

#31 | Posted by AuntieSocial at 2009-11-06 10:29 AM | Reply | Flag:

#16----- "what do you put on gold when you eat it?"--- well, Lettucespray, I think what Ray is trying to edify your empty edifice about is the point that your paper will eventually be quite worthless and you might as well put it on your bread (if you have any) and use it for jam-- what you don't get is gold is in the process of becoming a currency and when this cycle is at an end it have more value then any other currency on this globe. Then you would be able to buy a heck of a lot more of the worthless currency you currently hold.

#32 | Posted by matsop at 2009-11-06 11:43 AM | Reply | Flag:

We should make sure that all 6,000,000 plus unemployed, just since the "stimulus" bill was passed, get this story. I'm sure it'll make them feel better that the economy has recovered. One has to love the MSM spin on unemployment numbers each week. Because there were fewer people loosing jobs this week than lost jobs last week the economy must be better. Just how in the hell does a jobless recovery work? Those that still have jobs spend more? Of course a few hundred thousand of those will lose their jobs next month. What idiocy.

#33 | Posted by SpokaneJim at 2009-11-06 11:48 AM | Reply | Flag:

"What idiocy."

Criticizing the stimulus bill without any ideas to create jobs just makes you look like an unthinking partisan hack. What would you suggest to create more jobs??? Don't tell me....tax cuts. Right???

#34 | Posted by danni at 2009-11-06 12:07 PM | Reply | Flag:

SINGAPORE (Reuters) Barack Obama has done it again. The president's starpower has made the United States the place most people want to visit and do business with, according to an annual survey that ranks nations like retail brands.

The Country Brand Index, compiled by brand consultancy FutureBrand, found the United States had unseated Australia, which held the top spot for the past three years. Australia came in third this year with Canada rising to second place.

New Zealand and France rounded up the top five country brands in this year's index that included 102 countries.

#35 | Posted by Chill at 2009-11-06 12:11 PM | Reply | Flag:

#34---They need to focus on small business and they're FINALLY talking about it-- a day late and a dollar short.

#36 | Posted by matsop at 2009-11-06 12:13 PM | Reply | Flag:

#35-- Great, more tourism; actually what really is going to make a difference is the weak dollar which over time will depreciate even more.

#37 | Posted by matsop at 2009-11-06 12:15 PM | Reply | Flag:

"Great, more tourism"

Living in Florida it is a big deal. Our biggest industry.

#38 | Posted by danni at 2009-11-06 12:21 PM | Reply | Flag:

BTW, thousands of small businesses are involved in tourism.

#39 | Posted by danni at 2009-11-06 12:21 PM | Reply | Flag:

"A drop in unemployment claims and an upbeat forecast"
Posted by Manypaths

Ooopsie again. Better drop this post:

"Unemployment Rate Jumps to 10.2%; AP Reports 'Economy Is Rebounding'"
newsbusters.org

But the media reporting an upbeat forecast is correct. Nothing like being in the tank for Obama. Bush had a recession for over 5 years according to a media that wasn't in the tank for the President. Bush's 4.7% unemployment and 3% growth did not matter at all for those years.

It's amazing the difference a "D" makes in lying about the news.

#40 | Posted by KBM at 2009-11-06 12:30 PM | Reply | Flag:

What would you suggest to create more jobs??? Don't tell me....tax cuts. Right???

how about a tax cut to hire x amount of people for x amount of time or a tax credit if you don't lay off anybody for a year,might work better then just handing out more benefits.

#41 | Posted by semtex111 at 2009-11-06 12:38 PM | Reply | Flag:

#41 That would be capitalism, won't work.

#42 | Posted by fishpaw at 2009-11-06 12:56 PM | Reply | Flag:

"how about a tax cut to hire x amount of people for x amount of time or a tax credit if you don't lay off anybody for a year,might work better then just handing out more benefits."

If I'm not mistaken they are already talking about doing pretty much what you suggest.

#43 | Posted by danni at 2009-11-06 01:46 PM | Reply | Flag:

"BFD...It went to 14k under Bush and then the Dem's gained control of Congress and tanked the entire economy...
#11 | Posted by American1st"

The stupid is strong in this one.

#44 | Posted by mOntecOre at 2009-11-06 02:12 PM | Reply | Flag:

"Ray. I've heard it said there are 3 kinds of people.
Those that make things happen, those that discuss what happened, and those that ask wtf just happened.
The lions share of this site are in the last group, I'm afraid.
#20 | Posted by Washboard"

"Without question.
#21 | Posted by Ray"

We, on the other hand, make things happen. By sitting around in our pajamas, sniffing our fingers, and predicting imminent financial ruin on the Drudge Retort everyday.

Rayboard

#45 | Posted by mOntecOre at 2009-11-06 02:14 PM | Reply | Flag:

#41-----That would be great-- the small business I'm part owner of would have benefitted from that idea since we could have laid off but didn't. For once maybe the responsible people in this society would get a give back instead of all the entitlement folks and the ones that have ripped us off and put us in this position. Actually, I really don't want anything and have never wanted anything from them except the opportunity to compete on a level playing field.

#46 | Posted by matsop at 2009-11-06 02:35 PM | Reply | Flag:

Hummm....check my post of about 6 months ago where I said based on basic fundimentals the market should be trading between 9000 and 10000.....and that is where it is....

The first time it broke 10K was 1999....it was 14000 under Bush when we had 4.8% unemployment and the newspapers and the TV (and the dems..funny how that all aligns) were saying it was "the worst economy in 20 years"

Last time we hit 10%...1982...who controlled Congress ..you got it DEMS. Reagan had just gotten elected inherating 9.6 from Carter who's term was mired in 7 and 8+ % the whole time.

Sad that the press is so far in the tank for Obama that they will reach for ANYTHING that seems to say it is getting better.

Quite frankly with all the money that is out there we should be at 12K at this point in time - every month that goes by we should be seeing 2.5% increase in the DOW wtth the massive amount of money we have pumped them into the system.

I think we will see the market really start to move over the next several months as inflation kicks in - unemployment will stay high...then the FED will be faced with a choice: either raise interest rates which will crush the market OR see inflation run rampant.

In either case the poor in the this country will get hosed.

Thank you for your lack of understanding of basic market principle dems and your lack of foresite - your "compassion' will end up crushing us all.

#47 | Posted by foshaffer at 2009-11-06 02:39 PM | Reply | Flag:

#47...

Don't forget Kerry's version of the Misery Index he tried to use on Bush during the campaign. I can only imagine what that woud be today using Kerry's skewed numbers. lol

#48 | Posted by crispee_oc at 2009-11-06 02:44 PM | Reply | Flag:

Last time we hit 10%...1982...who controlled Congress ..you got it DEMS. Reagan had just gotten elected inherating 9.6 from Carter

You need to work on your time lines and facts there buddy.

What year was Reagan elected?

1980! Right very good. 2 YEARS earlier.

And now for the facts. What was the unemployment rate in 1980?

About 6.5% (1980-01-01 6.3)

See, when you lie, your entire argument is lost. Try to do it while being accurate next time. This only makes you look like a pathetic hack.

And maybe you should ask yourself why you feel the need to lie about such things.

#49 | Posted by Manypaths at 2009-11-06 02:50 PM | Reply | Flag:

See, now you make OC look all fucking stupid too because he believed you. If I was him, I would kick your ass.

#50 | Posted by Manypaths at 2009-11-06 02:51 PM | Reply | Flag:

This is all bad news.

The right.

#4 | Posted by Roy_Batty at 2009

market in free fall

oh the market isnt really something we worry about.

OBAMA

#51 | Posted by afkabl2 at 2009-11-06 02:58 PM | Reply | Flag:

so in the face of TEN PLUS percent of people out of work..does this really matter to them?
IM not trying to get anyone riled up...but how will this effect those people...

a little
a lot
not much
later on

#52 | Posted by afkabl2 at 2009-11-06 02:59 PM | Reply | Flag:

Them?

You sound like a fucking Socialist.

#53 | Posted by Manypaths at 2009-11-06 03:06 PM | Reply | Flag:

what?
it was just a question..them referring to the HIGHEST number of unemployed people in how many years..

what difference does this make to all of "THOSE PEOPLE"...there is THAT better....

geesh..........

#54 | Posted by afkabl2 at 2009-11-06 03:35 PM | Reply | Flag:

How to improve the employment picture. Break up everything too big to fail, like Citicorp and G-Sax to name two of the biggest threats to our economy. Offer tax breaks for job creation. Infrastructure spending. Tax the living shit out of imports. Fund new technology research and development but put an immediate halt to patenting life, from human genomes to plant seed.

#55 | Posted by nutcase at 2009-11-06 03:45 PM | Reply | Flag:

See, now you make OC look all fucking stupid too because he believed you. If I was him, I would kick your ass.

#50 | Posted by Manypaths at 2009-11-06 02:51 PM |

Kerry invents a new "Misery Index." The old one makes Bush's tenure look better than most.

Kerry's campaign has invented a new "misery index" that makes Bush's economic record look, well, miserable. Why a new index? Perhaps because the classic "misery index" -- which adds together the unemployment rate and the rate of inflation -- currently is better than it's been in most years since World War II. In fact, it's less than half the miserable level reached in 1980, the last year of the Carter administration, and better than in any of Clinton's first four years
www.factcheck.org

#56 | Posted by crispee_oc at 2009-11-06 04:26 PM | Reply | Flag:

How to improve the employment picture. Break up everything too big to fail, like Citicorp

Citi was hiring 60,000 employees per YEAR before the financial crisis.

60,000 hires per year.

#57 | Posted by Manypaths at 2009-11-06 04:35 PM | Reply | Flag:

What does "before the financial crisis" mean today? We owe these fuckers over $306 billion in guarantees after forking over $20 billion in cash. How many jobs have been vaporized in those numbers? Only about 6 million jobs, one company lost us 6 million jobs for one year. Robert Rubin is the third largest criminal asshole in this world after Shrub and Cheney. Notice how this criminal behavior pervades both parties.

#58 | Posted by nutcase at 2009-11-06 07:55 PM | Reply | Flag:

Many - Do you have a link to your Citi numbers? They are mind boggling and I would like to see it for myself. I can't find them using the googles.

#59 | Posted by andyuhenet at 2009-11-06 08:08 PM | Reply | Flag:

Gold reached for the record and the Yen is smokin'. As the Koreans say we are in deep Kim Chee.

#60 | Posted by RingMaster at 2009-11-07 12:05 AM | Reply | Flag:

Gold reached for the record and the Yen is smokin'. As the Koreans say we are in deep Kim Chee.

But the Messiah is doing the right thing borrowing this country's way out of a recession. Just ask a leftie.

#61 | Posted by goatman at 2009-11-07 12:09 AM | Reply | Flag:

But the Messiah is doing the right thing borrowing this country's way out of a recession. Just ask a leftie.

Yes this is true. When a president inherits a massive debt, thanks to the pubbies, all he has left to use is credit.

Thing about it in terms you can understand goatman, if you herd is down to a few dozen nani's, and your billy has testicular cancer, and your broke, what is your next best move to keep the ranch?

#62 | Posted by RingMaster at 2009-11-07 12:25 AM | Reply | Flag:

When a president inherits a massive debt, thanks to the pubbies, all he has left to use is credit.

No, that's not all he has left, ringo. He could go a tougher and longer route. Never have short term solutions solutions of throwing money at an economic crisis worked.

But it's politics over country for this clown, so he has to go for the short term solution (and cause longer term poblems) to ensure the dems win at least one more election.

#63 | Posted by goatman at 2009-11-07 12:33 AM | Reply | Flag:

Help Me understand something. Ray had a climax when He declared the price of gold was at it's highest level at something like 1,050.00 But when I plugged in a 1 in 1978 compared to a dollar in 2008 it came up with a 3.30 difference meaning it takes 3.30 dollars to equal the value of a 1 back in 1978. Doesn't it stand to reason the higher the stock point value just means it takes more stocks to equal the stock value of say 1978. So in actuality this 10,000 mark is actually a bad thing instead of a good thing. Or am I just all wet??

Larry

#64 | Posted by LarryMohr at 2009-11-07 03:07 AM | Reply | Flag:

Ray had a climax when He declared the price of gold was at it's highest level at something like 1,050.00

WTF are you smoking, Larry? I said no such thing! In a few years, gold and silver at these prices will look like the bargain of the century. If it peaked, I would have been selling. Instead I just bought as much as I could afford.

So in actuality this 10,000 mark is actually a bad thing instead of a good thing.

Yes. When adjusted for inflation, the value of stocks at 10,000 now will buy less than the value of the same stocks when the Dow first hit 10,000.

If stocks do continue to rise, it will because investors see it as an inflation hedge. But as you noticed, stocks do not keep up with their loss in real value. Inevitably, as happens all times in the past, stockholders come to the realization they they are playing a losing game. Then they crash.

#65 | Posted by Ray at 2009-11-07 09:43 AM | Reply | Flag:

Sorry Larry - I misread what you said about gold. Yes gold is at its highest nominal price, but not its real price when adjusted for inflation.

#66 | Posted by Ray at 2009-11-07 09:47 AM | Reply | Flag:

There is a chart on this page that shows gold rising against world currencies, and rising more so against the dollar.

www.financialsense.com

#67 | Posted by Ray at 2009-11-07 10:21 AM | Reply | Flag: