Regis Philbin
Apr 25th, 2007, 06:23 PM
Only took 6 months to go from 12,000 to 13,000...
http://www.bloomberg.com/apps/news?pid=20670001&refer=worldwide&sid=aF0Hp_eBqT5w
Dow Surges to 13,000, Fueled by 16th Quarter of Profit Growth
By Michael Patterson
April 25 (Bloomberg) -- The Dow Jones Industrial Average surpassed 13,000 for the first time after profit reports from more than half of its 30 members bolstered speculation that the biggest U.S. companies will weather slower economic growth.
The Dow reached the milestone 128 trading days after breaching 12,000, about 15 times faster than the previous thousand-point advance. The average, consisting of companies with a median market value of $117 billion, recovered from its biggest one-day slide in four years after first-quarter earnings at Citigroup Inc. and Caterpillar Inc. this month beat analysts' estimates.
Dow members are about 21 percent cheaper than in October, when the index first climbed above 12,000, based on the ratio of prices to historical earnings. USAA Investment Management, Bank of America Capital Management and LPL Financial Services, which manage about $727 billion, say the shares may rise more this year as demand from fast-growing economies buoys profits.
``This is the rare exception where you've had a bull market without P/E expansion,'' said Ronald Sweet, who helps manage about $37 billion at USAA in San Antonio. ``Having good earnings reports for this first quarter is setting up the scenario we were viewing for this year -- slower U.S. economic growth with corporate earnings still holding up.''
The Dow average, created in May 1896 by Dow Jones & Co. to measure the performance of industrial companies, climbed 1.1 percent to a record 13,089.89 today after first-quarter earnings at Boeing Co. surpassed analysts' estimates. Profits for the gauge's members have risen in 16 straight quarters.
The average price-earnings ratio for Dow members fell to 17.7 today from 22.5 when the index topped 12,000 on Oct. 18. Valuations contracted after profit at Dow companies increased 12.5 percent on average in the fourth quarter and jumped 18.7 percent in the third quarter, according to Bloomberg data.
http://www.bloomberg.com/apps/news?pid=20670001&refer=worldwide&sid=aF0Hp_eBqT5w
Dow Surges to 13,000, Fueled by 16th Quarter of Profit Growth
By Michael Patterson
April 25 (Bloomberg) -- The Dow Jones Industrial Average surpassed 13,000 for the first time after profit reports from more than half of its 30 members bolstered speculation that the biggest U.S. companies will weather slower economic growth.
The Dow reached the milestone 128 trading days after breaching 12,000, about 15 times faster than the previous thousand-point advance. The average, consisting of companies with a median market value of $117 billion, recovered from its biggest one-day slide in four years after first-quarter earnings at Citigroup Inc. and Caterpillar Inc. this month beat analysts' estimates.
Dow members are about 21 percent cheaper than in October, when the index first climbed above 12,000, based on the ratio of prices to historical earnings. USAA Investment Management, Bank of America Capital Management and LPL Financial Services, which manage about $727 billion, say the shares may rise more this year as demand from fast-growing economies buoys profits.
``This is the rare exception where you've had a bull market without P/E expansion,'' said Ronald Sweet, who helps manage about $37 billion at USAA in San Antonio. ``Having good earnings reports for this first quarter is setting up the scenario we were viewing for this year -- slower U.S. economic growth with corporate earnings still holding up.''
The Dow average, created in May 1896 by Dow Jones & Co. to measure the performance of industrial companies, climbed 1.1 percent to a record 13,089.89 today after first-quarter earnings at Boeing Co. surpassed analysts' estimates. Profits for the gauge's members have risen in 16 straight quarters.
The average price-earnings ratio for Dow members fell to 17.7 today from 22.5 when the index topped 12,000 on Oct. 18. Valuations contracted after profit at Dow companies increased 12.5 percent on average in the fourth quarter and jumped 18.7 percent in the third quarter, according to Bloomberg data.