An increased investor sentiment sent stocks to their highest value since May 2008 as it seems that the European debt crisis threat has cooled off a bit. For a brief time, the Dow Jones industrial average escalated and broke through record value of 13,000.
Analysts believe that there are reasons to hope for a recovery in the US economy and better times for the people living there, as well as in other global economies and the thank-you note of that goes to European nations putting together an aid package for the debt struck Greek nation. However, in the United States, despite stocks rising, corporate earnings showed a mixed sentiment of the country’s financial health and some economists feared that constantly increasing prices of gas will take out the positive sentiment prevailing in the markets and turn it into negative.
The slight period for which Dow Jones industrial average went past 13,000 is sign that the market has gained back its stand since the financial crisis. Investors are also looking at signs of improvement in housing and unemployment and stocks in 2012 so far have rallied.
Mark Zandi, Moody’s Analytics’ chief economist said that this is confirmation that the economy is heading in the right direction. He also said that businesses in America are doing very well.
Dow Jones closed at a value of 12,965.69, an increase of 0.1 percent from the day before. Dow’s value declined because of Walmart Stores Inc. as the largest retailer in the world posted a decline of 15 percent in its quarterly profits report. However, Macy’s Inc and Home Depot Inc posted high profits and earnings in the quarter, which pointed towards better times for the consumers.
Stocks have been on an improved path this year and according to Redwood Investments’ managing partner, Jennifer K. Silver, the developing rally for 2012 is still overdue.
