Dow Jones dancing in air

It was 27^th April 2007, that Dow Jones index busted out through the 13000 mark for the first time in its history. At that time the key question was how long can it can stay there? But in fact, a most obvious question was – does it even matter? The Dow Jones Index had just powered through 13000 that week indicating that it’s the true state of corporate America. At the moment, there was a sudden increase of nearly 1000 points in the Dow which rose from 12000 to 13000 points gain. That gain wasn’t of any weight at that time, since many of the experts were thinking that the increase may not be stable.

But the Dow Jones Index has proven the experts opinion into a wrong statement. Earlier the DOW Jones was in trouble with the sub primes. There were worries about the sub-prime lending. But soon the DOW had recovered from those worries. On 13^th July, 2007, the Dow Jones hit another record high. It shot up more than 280 points. Rio Tinto‘s $38.1bn bid for Alcan helped for the new high. And just like that, in the wave of an analyst’s pen, the sub-prime problems had vanished.

The Dow Jones rebounded from its recent sub-prime-induced troubles. The mood has swung to wild optimism once again, and wishful thinking that problems in the mortgage market will just go away. The economy is expected to be just fine, despite the devastation being wrought in the value of the one asset that has been propping up US consumer spending since the turn of the century - housing.

There’ll be many more mood swings to come.

But before any bad-news…. There is some good news waiting for us.

And that is on 17^th July 2007, The Dow Jones index broke through 14000 points for the first time in early deals. And all this has happened because the key economic data and strong earning from Coca-cola company and Johnson & Johnson Co/- have increased. In earnings, the coca-cola company has disclosed a strong set of second quarter figures which showed profits up to $1.85bn gain in emerging markets in China and India. Johnson and Johnson Company also gained up to $15,31bn as the healthcare products announced a 9% hike in second quarter profit as the sales were up by 135 points.

The Dow Jones is currently 41 points higher at 13,992, having hit 14,011. So, trying a hand on DOW JONES may not be a bitter experience now.