May 5, 2006

NOTHING JUICES THE MARKET LIKE UNDERREPORTING EMPLOYMENT FIGURES:

Dow surge puts record in sight (Alexandra Twin, May 5, 2006, CNNMoney.com)

The Dow Jones industrial average surged to its highest level in six years Friday, after a weaker-than-expected April jobs report fanned hopes that the Federal Reserve's interest-rate hiking campaign can soon end.

The Dow Jones industrial average (up 137.91 to 11,576.77, Charts) jumped 1.2 percent, according to early tallies. That set it at its highest close in more than six years and within 150 points of its record high of 11,722.98 hit on Jan. 14, 2000.

Posted by Orrin Judd at May 5, 2006 4:40 PM
Comments

O/T, but the Jan. 14, 2000 Dow Jones industrial average "record high" of 11,722.98 is only the nominal record.

Expressed as (2005 GDP)/(1929 GNP)*(1929 Dow), the Dow Jones industrial average high of '29 was 48,000.

2005 GDP - $ 13T
1929 GNP - $ 103B
1929 Dow - 381, in Sep.

Posted by: Noam Chomsky at May 5, 2006 7:11 PM

Of course it should be at 36,000

Posted by: oj at May 5, 2006 7:13 PM
« INTELLIGENCE?: | Main | THANKS, FLYBOY: »