According to ABC.com, the Dow Jones Industrial Average, has reached a high of 12,049.51 before hovering around the 12,000 mark. This is great news for the economy. It clearly shows that a high-market level of confidence is evident and that for the time being the ecomony is better then its probally ever been.

So how does it work?

According to Bostonstock.com, The Dow Jones: “is a market indicator- a method of measuring the stock market’s performance. The Dow, created over 100 years ago, tracks the performance of 30 well established companies, often called ‘blue chips’ (there are actually over 12,000 public US companies, but the Dow only measures 30.) While the Dow is the most frequently used index, there are several other market indications such as Standard & Poors (S&P) 500 Index.”

How its run

Sparing you the technicalities of the stock market, one can largely conclude and infer that the most important drive for the stock market is confidence. The idealology is simple: When people think that a stock is going to fall, they sell, if they think its going to grow, then they buy. Lets assume Wal-Mart (WMT), says that they are going to have a new CEO and that the annual revenue is expected to increase by a said percentage. Well this being a good indicator for the future of Wal-Mart, the stock price is likely to increase.
The lowest its ever been in years….

No not the Dow, but the unemployment rate. According to http://www.cia.gov/cia/publications/factbook/fields/2129.html

the current unemployment rate is 5.5%. That is lower then many expected. With the long lines at the unemployment office, and the vast applicant per job ratio, its hard the hardworking general public to see that little statistic, but on a whole more people have jobs, and the economy is up. Lets not forget those sweet-er prices at the pump as well!

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