Record Day for the Dow — How Far We’ve Come: McDonald’s Corproation (MCD), Wal-Mart Stores, Inc. (WMT), The Home Depot, Inc. (HD)

Page 1 of 2

The Dow Jones Industrial Average closed at a record high of 14,253.77 today, exceeding the previous high of 14,164.53 hit in 2007. Since the market bottomed on March 9, 2009, the Dow is up 118%, one of the best bull runs in the market’s history.

Here’s an idea of just how far we’ve come since the Great Recession began.

5 stats that show the Dow’s progress
McDonald's (MCD)In 2009, the 30 components of the Dow saw revenue fall 10.1%. In 2010 and 2011, growth was 10.2% and 10.1%, respectively, and even 2012 saw revenue grow 1%.

Between 2007 and 2009, compounded normalized net income dropped 13.9%, showing just how quickly profits fell across corporate America. But in the past three years normalized net income has grown at an 11.1% rate, more than making up for what was lost.

A steep drop in capital spending accounted for a lot of the decline in 2009. Spending dropped 11% that year, but by 2010 capital spending was up 9.6%, and in the last three years capital spending has grown at an 11.1% compound rate. This is a strong indicator that companies are still investing in the future.

Between 2009 and 2012, the return on assets for Dow components has jumped from 2.7% to 3.2%.

During the recession we heard a lot more than normal about inventory, because there is a drag on the economy when companies cut inventory. Well, in the past three years, Dow companies have grown inventory at a rate of 12.3%, faster than revenue growth of 7% to make up for the lack of inventory during the recession.

These stats show just how quickly companies cut back leading up to the bottom of the recession in 2009 and how quickly they’ve recovered in the three years since.

Who’s leading the way?
The market was last near current levels in 2007, but companies creating earth-shattering technology or fabulous new products haven’t led the Dow. The Home Depot, Inc. (NYSE:HD) has led the way, up 145% since October 2007, recovering from losses in the two prior years. But most telling about the past few years is that McDonald’s Corproation (NYSE:MCD) is up 101% and Wal-Mart Stores, Inc. (NYSE:WMT) is up 82%. The consumer was beaten up during the recession, and trading down was commonplace. Whether it was going from a sit-down meal to a drive-through or saving money on everyday items, investors who bet on companies with lower costs won from peak to peak.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!