Newspaper article THE JOURNAL RECORD

Market Maintains Record Breaking Momentum

Newspaper article THE JOURNAL RECORD

Market Maintains Record Breaking Momentum

Article excerpt

NEW YORK - The stock market maintained its record-breaking momentum this past week, in an impressive continuation of a two-month rally that analysts attribute lower interest rates.

""It was another week where many averages went to new records,'' said Newton Zinder, an analyst with E.F. Hutton.

Larry Wachtel, an analyst with Prudential-Bache Securities, said, ""I think the entire week was just one ongoing demonstration of the market's power.''

The Dow Jones average of 30 industrials, the best-known stock market indicator, set a record on Monday, paused on Tuesday and Wednesday, roared foreward 23.05 points on Thursday and then edged up Friday for its third daily record of the five sessions.

Noting the midweek flounder, Wachtel said:

""There are two ways you consolidate in the stock market. Either you move downward or you move sideways.'' This time, the market moved sideways, and that also attests to its strength, he said.

The Dow average has gained more than 160 points since late in September.

""It has moved into the emotional,'' Wachtel said. ""One thing you can't measure in a computer is fear and greed. And what we're seeing here is greed. How far it will take the market is hard to say.''

Analysts say the decline in interest rates is behind the enthusiasm on Wall Street?

""There is a presumption that rates will move lower,'' Wachtel said.

Lower interest rates make stocks an attractive investment alternative to certificates of deposit and other bank instruments. In addition, lower rates fuel the economy, which is good for corporate profits.

Zinder has a slightly different view than Wachtel.

""What we're seeing here are two things workin very much in favor of the stock market. The economy looks stronger and interests rates are going lower. …

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