5 Reasons The Dow May Be Headed Toward 12,000:
Stocks move up for the fourth consecutive week.
The Dow Jones Industrial average had its fourth consecutive week of gains after stocks rallied on Friday. Friday’s close of over 267 points helped lift the major averages and put the Dow Jones Industrial Average into positive territory for the year. Could the Dow be headed towards 12,000?
Here are 5 reasons the Dow could be headed towards 12,000:
- Europe looks encouraging at the moment although the EU summit may not be the panacea market participants are looking for.
- Economic news looks brighter- the Feds Beige book showed some signs of expansion although growth is still slow. The U.S. government helped add some positive fodder by showing unemployment was lower in 11 states as opposed to 26 in August.
- Corporate earnings news was positive as several companies reported better earnings than expected except for Apple.
- North Africa- Middle East tensions seemed less disruptive to world markets with announcements of the U.S. leaving Iraq and Gadhafi’s killing although questions remain about how it occurred.
- Lower volatility- traders seemed willing to hold stocks longer and equities changed hands with less fervor this week.
The stock market looks headed toward 12,000 but news from Europe could stop the upward momentum. Any signs that contagion could spread in the short term would take the wind right from the sails.