If stock market returns truly represented the health of the entire economy, we’d all be sitting pretty right now. After posting triple-digit gains today, the Dow Jones Industrial Average (INDEXDJX:.DJI) sits 20% higher than it did to begin the year. Not shabby for seven months’ time!
Central banks in the U.S. and Europe are maintaining low interest rates to encourage growth, a strategy that has helped send blue chips up nearly 140% from 2009 lows. Meanwhile, the unemployment rate remains at 7.6% in a recovery that’s been slow to generate jobs growth. That said, corporate America is doing just fine, and the Dow Jones Industrial Average (INDEXDJX:.DJI) roared 128 points, or 0.8%, higher, ending at 15,628.
PC-maker Hewlett-Packard Company (NYSE:HPQ) ended as a third big gainer, adding 2.1% Thursday. The stock has certainly done its part to boost the Dow Jones Industrial Average (INDEXDJX:.DJI)’s returns this year, posting 84% gains thus far. It remains to be seen how concentrating more efforts on its enterprise business, as the PC market slowly wanes, will play out, but for now, Hewlett-Packard Company (NYSE:HPQ) is still squeezing what it can out of its PC presence, and the back-to-school season will be closely watched by investors.
Lastly, Exxon Mobil Corporation (NYSE:XOM) Mobil shed 1.1%, ending as one of just five blue chip decliners. The energy giant reported disappointing second-quarter earnings today, with profits falling 57% from a year earlier. A company-funded report also showed today that the cause of a pipeline breakage in March was the result of small cracks worsening over time — something that can happen in structures built in the World War II era.
The article Why the Stock Market Surged 128 Points Today originally appeared on Fool.com is written by John Divine.
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