Dow Jones Industrial Average Breaks 3800 Barrier for the First Time

Strategic Insights -

The Dow Jones Industrial Average surpassed the 3800 barrier on Thursday for the first time ever, with the Dow industrials adding 5.06 points to 3803.88, marking its second straight record close. The Dow transportation also set its second straight record close, climbing 23.38 to 1802.21. However, the New York Stock Exchange composite index slid 0.31 to 259.00, while Standard & Poor's 500-stock index eased 0.43 to 467.12. The stock market's mixed performance was attributed to profit taking, which chipped away at early gains fueled by a bond rally.

Key Takeaways:

  • The Dow Jones Industrial Average reached 3803.88, breaking the 3800 barrier for the first time ever, and setting its second straight record close.
  • The Dow transportation also set its second straight record close, climbing 23.38 to 1802.21.
  • The New York Stock Exchange composite index slid 0.31 to 259.00, while Standard & Poor's 500-stock index eased 0.43 to 467.12.
  • Advances outpaced declines 1,164-989 among the 2,703 issues crossing the NYSE tape.
  • Final floor volume proved heavy for the second straight day, with 367,880,000 shares traded, down from 400,030,000 in the same period Wednesday.
  • The bond market rallied on Thursday's "much worse-than-expected jobless-claims report," with the 30-year Treasury bond bouncing back 25/32 to 98 25/32.
  • Traders said the bond market had been expecting a bigger increase of at least 225,000 in jobless claims, and Robert Reich's comments prompted players to assume the secretary knew what Friday's employment report would show.
  • Gene Seagle, technical research director at Gruntal & Co., said the stock market is benefiting from earnings improvement and seasonal factors like reinvestment in stocks during the new year.

Statistics:

  • The Dow Jones Industrial Average rose to 3803.88, a gain of 5.06 points.
  • The Dow transportation index climbed 23.38 to 1802.21, setting its second straight record close.
  • The New York Stock Exchange composite index slid 0.31 to 259.00.
  • Standard & Poor's 500-stock index eased 0.43 to 467.12.
  • Advances outpaced declines 1,164-989 among the 2,703 issues crossing the NYSE tape.
  • Final floor volume was 367,880,000 shares, down from 400,030,000 in the same period Wednesday.
  • The 30-year Treasury bond bounced back 25/32 to 98 25/32.
  • The U.S. dollar finished mixed, changing hands at 1.7450 German marks and 112.65 Japanese yen, compared with 1.7405 marks and 113.03 yen late Wednesday.

Sources:

  • Dow Jones Industrial Average news
  • New York Stock Exchange (NYSE) trading data
  • Standard & Poor's 500-stock index data
  • Bond market news
  • Labor Department jobless claims report
  • Robert Reich's comments on the bond market
  • Gene Seagle, technical research director at Gruntal & Co.
  • Wall Street Journal