|CHRISTINA REXRODE, Associated Press|
After rising steadily in early trading thanks to the U.S. jobs report, the Dow briefly crossed 14,000 around
The Dow has crossed 14,000 only 15 times in its history. The last time was
If the gains hold and it closes above 14,000 on Friday, that would put it in even more rarefied territory: On just nine of those days did it manage to close above 14,000 at the end of trading.
That time more than five years ago seems almost a different era _ before signs of the devastating financial crisis were apparent to the average observer.
The benchmark is not far from its all-time high, 14,164.53, which it reached on
The Dow is an index of 30 big companies, and its purpose is to represent how the broader stock market is faring. And while hitting 14,000 would be an important psychological milestone, it wouldn't be much else.
The stock market is more a representation of how traders are feeling about the economy than the economy's underlying fundamentals. And many investors don't even think the Dow is the best way to track the market: They prefer the much bigger Standard & Poor's benchmark index, which follows 500 companies, because they think it represents a more accurate view of the economy.
"You can hit these milestones, but then it can always end badly," said
"It's meaningless to the average professional," said Gordon, referring to the 14,000 benchmark. And for workers still unemployed by the financial crisis, he said, "it really means nothing to them."
At midmorning, the Dow was up 119 points to 13,980. The Standard & Poor's 500 rose 10 to 1,508. The Nasdaq composite index was up 19 to 3,161.
Overall, the government jobs report that pushed stocks forward was mixed, but traders chose to focus on the positive. The U.S. said it added 157,000 jobs in January, which was in line with what traders had been expecting. Unemployment inched up to 7.9 percent from 7.8 percent in December. But, encouragingly, the government also reported that hiring over the past two years has been higher than it originally thought.
The jobs number is based on a survey of employers, and the unemployment rate is based on a separate survey of households, which is why they can diverge.
But there were also reminders that the debt problem is far from solved.
Among companies making big moves:
_ Drugmaker Merck fell nearly 3 percent, down
_ Insurance company
|Copyright:||(c) 2013 The Associated Press. All rights reserved.|