The Dow (finally) also rises
The Dow Jones Industrial Average (DJINDICES: ^DJI ) , only two weeks removed from itsfinancial-crisis bottom, reacted with glee to news of more government liquidity for the financial markets by rising 6.8% on March 23, 2009. The 497-point gain was both its fifth-best point gain of all time to that date (and, as of this writing, still the fifth best of all time), and one of its best percentage gains of all time as well. The plan of the day, which involved a Treasury-backed “Public-Private Investment Program” to eliminate up to $1 trillion in bad assets on bank balance sheets, came a week after the Federal Reserve’s announcement that it would provide up to $1 trillion in liquidity. Two trillion dollars in federally backed financial commitments was simply too much for beleaguered investors to pass up.
All of the major financial stocks then on the Dow that are still components to this day posted double-digit gains on the news. JPMorgan Chase & Co.(NYSE:JPM) rose by 25%, Bank of America Corp(NYSE:BAC ) was up 26%, and American Express Company(NYSE: AXP ) gained 19%. It was just the beginning for all of these companies, and for the Dow as well. In the four years that followed the big pop, Bank of America Corp(NYSE:BAC) gained 64%, JPMorgan gained 81%, and American Express Company(NYSE:AXP) grew 390%. The Dow rose 87% in that time, in no small part because of American Express’ market-thrashing performance.
The article Everything Seems to Be Going Up originally appeared on Fool.com and is written by Alex Planes.
Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends American Express Company(NYSE:AXP)and owns shares of Bank of America Corp(NYSE:BAC) and JPMorgan Chase.
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