Dow, S&P and Nasdaq Hit 15-Month Highs

[sabra]

Source: CNBC

Stocks rallied on the first trading day of the new year, buoyed by a trifecta of news: A report that showed growth in the manufacturing sector, the dollar's pullback and an upgrade on Intel.

The Dow Jones Industrial Average and S&P 500 touched their highest levels in 15 months, and for the tech-heavy Nasdaq, 16 months.

The ISM's gauge of manufacturing showed growth for a fifth straight month, rising to 55.9 in December from 53.6 in November. Economists had expected a more modest uptick to 54.1.

"ISM is good news. Pessimists repent!" Robert Brusca of FAO Economics, wrote in a note to clients. "There is nothing weak or phony about the pace of this recovery or about its breadth in the manufacturing sector," he said.

Read more: http://www.cnbc.com/id/34689291

[MineralMan]

1. Good news.

Now we wait for the naysayers. :popcorn:

[Xipe Totec]

5. A one day rally?

Nay, I say!

[MineralMan]

9. Actually, not a one day rally at all.

In fact, it didn't go up all that much today. The trend is upwards since past April. There was some good news today about manufacturing, so it went up a bit more. Go Google DJIA and look at the chart for different time periods.

[Xipe Totec]

31. Dec 31, 2009 was a down day.

A rally is a continuous, uninterrupted, string of up days.

Technically, this is a one day rally.

[Abacus]

23. Not even on Venus

More like 10 months...
http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=0&mn=10&dy=0&id=p17682469485

[TheWraith]

2. Kicked and recommended.

Even though I had to cash out my 401k a couple months ago. :)

[janx]

3. I've been watching it today!

The DOW kicked up over 10,600.

[lamp_shade]

4. The ole nest egg is looking better every day.

[BrklynLiberal]

6. The repukes will find a way to pee on this...especially if it continues.

[Common Sense Party]

12. The repukes? Hell, the DU'ers of the Perpetually Bunched Undies

will poo poo this much more than the Repukes.

[mac56]

15. "DU'ers of the Perpetually Bunched Undies"!

:rofl:

[Common Sense Party]

19. What else would you call them?

Those who are determined to be in a snit no matter WHAT.

[SpartanDem]

34. ain't that the truth

good=bad news bad news= the apocalypse

[rfranklin]

7. Where are the jobs?

This means nothing until we see some jobs created. We just spent the last ten years with a net loss of jobs.

They're all dancing on Wal Street because the last report was that productivity was up 10%--translation is that fewer people are worker much harder without receiving proportionate compensation.

I will rejoice when the jobs start rolling in at 300,000 per month.

[MindPilot]

11. the market is predictive -- so I'm told by everyone who supposedly knows this stuff

Meaning jobs will follow in a few months, and that trend is already starting. I've been out of work for six months. In that time I've had two interviews; then in one day the week before Xmas I got calls from three different recruiters.

[girl gone mad]

13. "The market is predictive.."

Prove it.

[MindPilot]

16. Can't. That's why I said "so I'm told".

But currently my personal experience tends to support the idea that things are beginning to get better.

Obviously you have a different interpretation. No need to be snarky about it.

[TheWatcher]

24. She wasn't being snarky about it.

She posted a pretty informative chart.

There is nothing fundamental behind this latest Bubble.

And when it collapses, the Media and TPTB will shrug their shoulders once again and coo to you "No one could have foreseen."

And most will fall for it all over again.

[janx]

26. The chart is sarcastic, but it does make a point.

Most of the time, the economist talking heads don't know what the hell's going on when they make their "predictions." Most of what anyone learns about what's going to happen with the stock market is hindsight.

But there are some very basic, general rules, like the dollar dropping when the market goes up, the jobs being a lagging indicator in a recovery, etc.

From what I can see, looking at a chart going back five or six years, is the real "bubble" that started in 2006 and jumped to unsustainable highs in 2007 before finally crashing in 2009. What I see from that point on is a slow but steady rise. In 2005 or early 2006, the DOW was bubbling along at 10,500 or 11,000--around where it is now.

[xchrom]

8. We need economic good news. Nt

[BP2]

10. Not to be one of those naysayers, but

what exactly are the basic fundamental market forces behind this rally?

If it's because the banks and insurance companies have received billions in bailouts, I'm not cheering.

If it's because the Fortune 500 have laid off millions of workers to make huge profits because of the slowdown in Consumption, I don't think this is anything to be cheering about, either.

A slowdown in Consumption is actually a good thing for the Environment, last time I checked.

It depends on your point of view and for whom you're cheering.

[mistertrickster]

14. Buy gold and stockpile ammo before it's too late! (sarcasm) nt

[Yavin4]

35. What's the Point of Stockpiling Ammo?

If we get to a Mad Max-like world, the meandering hordes will eventually overtake your ammo. Sure, you'll have enough for two or three waves of attacking masses, but soon, you will run out.

[doc03]

17. My 401K surpassed its all time high made in

the 3 quarter of 2007 a couple weeks ago.

[doc03]

18. I remember last March the wingnuts

were claiming the market had dropped several hundred points for each week Obama was in office. I don't hear a peep out of them now other than Larry Kudlow said Bush planted the tiny little mustard seeds of recovery before he left office with the TARP bailout.

[Common Sense Party]

20. Yes, but keep in mind much of that is due to your contributions that

you've been putting in since 2007. That's two years' worth of cash. The market is not back to where it was in Q3 07. It's getting there, but not yet.

[doc03]

25. You are right about that, if I count my contributions I

am down about $10,000. That's not bad since I was down about $50000 this spring.

[Common Sense Party]

29. Oh, yeah. things are MUCH better than they were back in March.

I do 401(k) plans for a living, so most people are happy with what their accounts have done since the Spring...it's much more pleasant visiting clients now than it was a year ago.

[janx]

27. Q3 07 was artificially high though.

And your point is well taken. I think some who play the stock market are pissed that the DOW isn't at 14,000 or something--but that's not realistic.

[Common Sense Party]

28. Artificially high? How so?

[Codeine]

32. I was surprised to see my Emerging Markets Fund numbers

on my most recent statement. Bit of a rally.

[jpak]

21. "Pessimists repent!" LOL!

not here anyway

[AllentownJake]

22. Something tells me boom is happening soon

Could be wrong. They got the late suckers back in again, normally time to pull the rug.

[Common Sense Party]

30. ?

Do you mean, "bust" is happening soon?

[TexasObserver]

33. Recommend