8A
NEWS
THE UNIVERSITY DAILY KANSEN
THURSDAY, APRIL 26, 2015
Dow Jones industrial average hits historic levels
STOCK MARKET
Investors continue to worry about economy
BY MADLEN READ AND TIM PARADIS ASSOCIATED PRESS
NEW YORK — It looks like a cause for celebration: The Dow Jones industrial average surged from 12,000 to 13,000 in just six months. But appearances can be deceiving, and there may be more reason to worry rather than rejoice about Wall Street's latest accomplishment.
Stronger-than-expected profits from several large companies helped push the stock market to historic heights. But many big corporations, including the Dow components, made a chunk of that money overseas, where economies are growing faster than in the U.S. And many of the same worries that weighed on investors earlier in the year remain: rising energy costs, a slumping housing market and a possible credit crunch.
began Wednesday, and even made it past 13.100, rising as high as 13.107.45. According to preliminary calculations, it closed at 13.089.89, up 135.95 or 1.05 percent.
Still, the stock market's best-known indicator surged past its latest milestone shortly after trading
The broader market shared in the rally. The Standard & Poor's 500 index rose 15.01, or 1.01 percent, to 1,495.42, after reaching 1,496.59, a six-and-a-half-year high. The technology-dominated Nasdaq composite index advanced 23.35, or 0.92 percent, to 2,547.89, after hitting a six-year high of 2,551.39.
And the Russell 2000 index, which reflects the performance of smaller companies, also had a record close, rising 5.71, or 0.69 percent, to 832.07.
barrel from 10,000 to 11,000.
Henny Ray Abrams/ASSOCIATED PRESS
It took the Dow just 129 trading days, since Oct. 18, to make the trek from 12,000 to 13,000, far less than the 7 1/2 years the blue chips took to go from 11,000 to 12,000. But the swiftness of this latest trip does recall the days of the dot-com boom when the major indexes were soaring and it took the Dow a mere 24 days to
Wall Street got an additional lift from the Commerce Department's report on durable goods last month, which showed a gain in orders of business capital goods and reassured investors that demand for U.S. products remains strong. The department also reported that sales of new homes rebounded slightly in March.
The monitor above the floor of the New York Stock Exchange shows the Dow Jones Industrial Average above 13,000, on Wednesday, in New York. The Dow Jones industrial average shot past 13,000 for the first time, powered by better-than-expected corporate earnings that boosted investors' confidence in the U.S. economy.
About two-thirds of U.S. companies so far have reported earnings that were in line with or higher than analyst expectations, said Jim Herrick, director of equity trading at Baird & Co.
"We've had pocket's of companies report better earnings, and in light of the Fed not appearing to 'raise rates anytime soon, that bodies well for the market," said Herrick. "Going forward, the market's going to be data-driven. The market's going to focus on economic data to get a hint about what the Fed will do in the latter half of the year."
Wednesday's advance gained even more momentum from the Federal
Reserve's assessment that economic growth seemed moderate in much of the country. Inflation appeared tame, according to the Fed's Beige Book, which describes economic conditions in regions around the country
Investors have been encouraged by stable earnings growth, which shows that U.S. companies are faring well despite a slow economy. A large
and arrives two weeks before the central banks next meeting.
reason why corporate growth has held up is strength in international sales; PepsiCo Inc., for one, said Wednesday its overall profit rose 16 percent, despite a drop in operating profit at its North America unit.
POLITICS
Democrats approve subpoenas
BY LAURIE KELLMAN ASSOCIATED PRESS
WASHINGTON — Putting their congressional control to work, Democrats approved new subpoenas Wednesday for probes ranging from the prosecutor firings and White House political activities to President Bush's justification for the war in Iraq.
Democrats said the broad array of investigations represents a revival of Congress' role after six years of little oversight of the Bush administration by Republican lawmakers. The White House is pushing back, refusing to allow officials to testify under oath about the firings and arguing that top officials already have answered questions about the administration's now-discredited claim that Iraq was seeking uranium for a bomb.
"I am beginning to wonder whether the White House has any interest in the American people learning the truth about these matters," said Senate Judiciary Committee Chairman Patrick
Leahy (D-Vt.).
Congress' effort isn't driven solely by Democrats. Republicans have barely restrained their disdain for Attorney General Alberto Gonzales' accounting of the firings, including his claims of a faulty memory.
Sen. Arlen Specter co-signed a letter with Leahy Wednesday urging Gonzales to freshen his memory and provide answers within a week.
Lawmakers say they want *to force into the open the story of why the eight U.S. attorneys were fired.
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》WAR IN IRAQ
WASHINGTON - Democrats brushed off a White House veto threat and pleas for patience from the top U.S. commander in Iraq Wednesday and pushed toward a vote demanding that troops begin coming home this fall.
Bill could bring troops home Bush threatens veto, pleads for patience from Capitol Hill
Their insistence guaranteed a historic showdown with President Bush, the first on the war since Democrats took control of Congress in January.
BY ANNE FLAHERTY
ASSOCIATED PRESS
"We need to claim victory for our soldiers," said Rep. Sheila Jackson-Lee (D-Texas). "They have done their job. It's time to bring them home now."
Late Wednesday, the House was expected to pass a $124.2 billion war-funding bill that would require troop withdrawals to begin Oct. 1 with the goal of completing the pullout six months later. Bush has promised to veto the bill and has enough Republican votes to sustain his objection.
Rep. Peter Hoekstra (R-Mich.), said ending the war would be handing a victory to terrorists. Rep. Duncan Hunter (R-Calif.), called on Senate Democratic Leader Harry Reid (D-Nev.)0, to resign for saying the war was lost.
Emotions ran high.
Bush dispatched his Iraq general, David Petraeus, and other top officials to Capitol Hill to make his case: Additional forces recently sent
Lawmakers ducked into the briefing as protesters shouted, "Troops home now!"
to Iraq are yielding mixed results and the strategy needs more time to work.
Under the bill, troops could remain in Iraq after the 2008 date but only for limited non-combat missions, including counterterrorism operations and training Iraqi forces.
The bill, already negotiated with Senate leaders, is expected to reach the president's desk by early next week following a final Senate vote Thursday.
would have to take fighting directions from legislators 6,000 miles away on Capitol Hill," Bush said this week. "The result would be a marked advantage for our enemies and a greater danger for our troops."
"We need to claim victory for our soldiers. They have done their job. It's time to bring them home."
Whether Democratic leaders had enough votes to pass the bill in the House has been in question. The
SHEILA JACKSON-LEE Representative (D-Texas)
Democrats view the November elections that allowed them to take control of the House and the Senate as a referendum on Bush's conduct of the war.
"For the first time, the president will have to be accountable for this war in Iraq." House Speaker Nancy Pelosi, said Tuesday. "And he does not want to face that reality."
Bush, however, says he stands firm on his latest strategy for winning the war and dismisses as counterproductive the Democratic call for withdrawal.
"That means our commanders in the middle of a combat zone
original House bill included a binding timeline, demanding that combat end by September 2008. Several of the 218 members who approved that bill said they agreed though they wanted troops home sooner.
Republicans on Wednesday focused on Reid's comment that the war was lost. Reid said last week that he believed strides in Iraq could be made only on the political and diplomatic fronts.
"It is fairly irresponsible rhetoric at a time of war to make such a sweeping declaration," said Rep. Adam Putnam (R-Fla.). "It certainly doesn't do anything to help the morale of our troops in harm's way."
House Majority Whip Roy Blunt told reporters he was not concerned about GOP defections despite the unpopularity of the war. But Blunt, (R-Mo.), said progress must be made soon or that could change.
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