BY KATIE BRENNAN
The Dow Jones Industrial Average is trading in territory it hasn’t seen since 2007. CNBC reports the 30-company index broke its all-time record close and interday high right after the opening bell rang Tuesday morning, and kept climbing.
“We do have strength across the board. all the major sectors participating in the broad-based rally. The financials, the staples, consumer discretionary, health care, transports, all hitting new highs in today’s session. 52-week highs, we should be more specific about that.”
But investors and analysts alike are debating what’s behind the surge. Is in inflated or legit? CNN’s Allison Kosik says, with the macro headwinds coming from Europe and stagnant U.S. GDP, it’s got to be inflated. She blames Ben Bernanke and the Fed.
“So what you're seeing is this run up actually fueled essentially by the Federal Reserve which is pumping stimulus money, $85 billion every single month...and it's not necessarily the economy that's the driver.”
Then there’s those that think like Fox Business’ Charles Payne.
“The Ben printing money hand even begun to hit the stock market. This is legitimate dow market based on valuations, based on profits being generated around the world. This is legitimate and this is why people have missed the rally for four years, everyone keeps saying its not.”
Business Insider’s executive editor Joe Weisenthal summed up Wall Street’s pessimistic outlook in his tweet.
“Financial blogs today: The Dow isn't at a real high, nominal highs don't matter, the Dow is a bad index, and real Americans are suffering.”
Regardless of the source of the rally, it’s impossible to deny the Dow’s come far since it set it’s previous record in 2007. ABC News explains the context surrounding that 14,198 point record when it was set five years ago.
“That record of course back 2007 was cut just the before financial collapse when a lot of big companies in the United States were undergoing financial scrutiny and subsequent failure and down turn.”
The Dow has to hold on to 39 points to set another record and close at an all time high. The S&P 500 saw a rally too Tuesday, it set a fresh five-and-a-half-year high, and is gaining ground on it’s all time high.