Dow falls almost 700 points after blowout jobs report dashes hopes for more rate cuts CNN Business

However, in points, the Dow’s worst day was March 16, 2020, when it fell 2,997.1 points in reaction to the pandemic-era adoption of lockdowns throughout the U.S. and the Federal Reserve slashing interest rates to near zero. American Airlines (AAL) shares slumped in premarket trading Thursday as the carrier’s soft outlook outweighed stronger-than-expected fourth-quarter results. For 2025, GE Aerospace projects low-double-digit adjusted revenue growth after rising 10% to $35.1 billion in 2024, along with adjusted earnings per share (EPS) of $5.10 to $5.45, up from $4.60 this year.

Despite an expected increase in volatility in the market leading up to the election, stocks may actually continue to rally through November, according to Rob Williams, chief investment strategist at Sage Advisory. Trade wars and bond market disruptions loom over an otherwise buoyant stock market. But the historic peak was delayed by strong economic news, an upturn in March inflation data and statements from Fed officials suggesting interest-rate cuts wouldn’t be coming soon. The Dow Jones Industrial Average was first composed by Charles Dow.At its start it only contained twelve companies and was mostly composed of energy, railroadand food stocks.

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On July 3, the Dow hit a new high when the Trump administration announced it would resume trade negotiations with China, averting additional tariffs (taxes on imports). The Dow Jones Industrial Average (the Dow) is an index of the 30 top-performing U.S. companies. The most recent all-time-high record (as of this writing) was on Jan. 4, 2022, when it closed at 36,799.65.

year chart of the Dow Jones stock index*

The Invesco QQQ Trust’s expensive multiple shows that investors are banking on future earnings, not present earnings. And because of that, Nasdaq stock prices have grown at a faster rate than earnings. One of the largest Dow exchange-traded funds (ETFs), the SPDR Dow Jones Industrial Average Trust (DIA -0.33%), has an average component price-to-earnings ratio of 22.1.

{undefined} recommend the market-capitalization weighted S&P 500 Index or the Wilshire 5000, the latter of which includes most publicly listed U.S. stocks, as better indicators of the U.S. stock market.

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• “The strong jobs report sent yields higher amid expectations for the Fed to pause its rate cutting cycle for a significant period of time,” Ross Mayfield, an investment strategist at Baird, wrote in a note Friday.
• At Bank of America, economists now believe the Fed is done cutting rates — and see a growing possibility that central bankers may, instead, need to consider raising rates.
• The Invesco QQQ Trust’s expensive multiple shows that investors are banking on future earnings, not present earnings.
• Consumer prices rose 3.4% from last April – a decline from March’s 3.5% annual increase.
• A lot of Dow stocks have inexpensive valuations relative to the market.
• The ten components with the largest dividend yields are commonly referred to as the Dogs of the Dow.

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• The longest bull market in history lasted about 11 years, starting in March 2009 and ending in February 2020.
• A bet on the Dow over the Nasdaq is a bet on proven strength and stability instead of potential growth.
• If the market is doing well, that probably means investors are willing to take on more risk, pay a higher price for growth, and gravitate toward Nasdaq stocks.
• Since the Dow tracks just 30 large-cap U.S. companies, some critics argue that it is too narrow to represent the state of the overall U.S. economy.
• Analysts expected profit of $426 million, or 60 cents per share, on revenue of $13.39 billion, per Visible Alpha.

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• US stocks ripped higher on Wednesday as high hopes for bank earnings paid off and a crucial consumer inflation update showed key prices increased less than expected in December.
• And it also shows that, despite a strong year-to-date return for the Dow, the index is still a fairly good price.
• Despite today’s roughly 2% rise, Elevance Health shares are down about 15% in the last year.
• Share repurchases among the S&P 500 companies were 59% higher in the first quarter of 2014 than the first quarter in 2013.
• These changes are not done often to ensure the index’s stability and continuity.
• The index passed the threshold again the following day before reaching its all-time intraday high as trading opened the next week.

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• The Dow posted its all-time high during in December 2024, peaking at over 45,000 points.
• The Dow continuously moved higher eight months in a row (the last occurrence of this was in 1995).
• After closing above 2,000 in January 1987,43 the largest one-day percentage drop occurred on Black Monday, October 19, 1987, when the average fell 22.61%.
• The first-quarter dividend is payable on March 25 to shareholders of record at the close of business on March 10.
• So, they are more valued for their present earnings rather than what they could make in the distant future.
• This was the Dow’s third consecutive trading day with a record close and the fourth record closing in just two months.

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• If you do want some growth and are willing to take on more risk, you may want to avoid stocks like Verizon Communications and Walgreens Boots Alliance.
• Previously, the Dow had fallen from 11,723 in January 2000 to 9,389 in March 2001, dropping 20% (from 20,520 to 16,434 points, inflation-adjusted).
• The shipper reported fourth-quarter earnings per share jumped 7% from a year ago to $2.91, exceeding analysts’ expectations.
• However, in points, the Dow’s worst day was March 16, 2020, when it fell 2,997.1 points in reaction to the pandemic-era adoption of lockdowns throughout the U.S. and the Federal Reserve slashing interest rates to near zero.
• After hitting the Jan. 26 peak, the Dow went into free fall, dropping 4% the next week.
• The major indexes finished near their highs for the day thanks to a late-session surge.

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• The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (/ˈdaʊ/), is a stock market index of 30 prominent companies listed on stock exchanges in the United States.
• As such, point moves are a way to measure the relative change in the index’s value.
• The index peaked again in July, almost reaching 42,000, then rallied in September when the Fed started cutting interest rates for the first time since 2020.
• He also asked Saudi Arabia and the OPEC group of major oil-producing countries to reduce oil prices, which he said would lead to lower interest rates.
• The Dow fell 17% in three months, from 2,864.60 on Aug. 2 to 2,365.10 on Oct. 11, 1990.
• If the stock market cools off in 2024, or if valuations come down after this year’s epic run, or if some uncertain risk comes to light that scares the market, then chances are the Dow will outperform the Nasdaq.

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• The shares included in it are weighted according to price; the index level represents the average of the shares included in it.
• Traders now expect just a 2.7% chance the Fed will cut rates at its policy meeting later this month, according to the CME FedWatch Tool.
• The airline reported fourth-quarter net income of $590 million, or 84 cents per share, on revenue of $13.66 billion.
• The close was just shy of a previous record close of 40,003 set on May 17.
• Bureau of Labor’s CPI since this gives the relative change over time.

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• Traders on Friday expect a 25% chance the Fed will cut rates in March, down from Thursday’s expectations of a 41% chance, according to the CME FedWatch Tool.
• The report comes a week after GameStop CEO Ryan Cohen posted a photo to X of him and bitcoin evangelist and Strategy CEO Michael Saylor.
• Many records were set in 2019, thanks partly to trade talks with China that boosted firms in the index.
• Oracle shares also recovered from early losses to close 1.2% higher and have now gained 15% over the past three days.
• Shares of Elevance Health (ELV) advanced Thursday after the health insurance provider reported better-than-anticipated results on higher premiums, acquisitions, and growth of its pharmacy coverage unit.
• Netflix climbed 11% on Friday after the streaming giant beat Wall Street’s earnings and revenue estimates in the third quarter, while reporting a 35% jump in ad-tier memberships from the prior three-month period.
• The Russell 2000 index, which tracks smaller companies, fell 2.2%, highlighting concerns about the impact of “higher for longer” interest rates.

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• The index is maintained by S&P Dow Jones Indices, an entity majority-owned by S&P Global.
• Where p are the prices of the component stocks and d is the Dow Divisor.
• “Usually it’s the other way around — the market’s hesitant, and then it does well after the election.
• Stocks closed solidly higher on Thursday for the fourth straight session as investor optimism about the new Trump administration continues to run high.
• They remain split on whether a cut will come in the back half of this year, with odds of easing in June now seen as more likely than not.
• We’ve included a few key shocks to the stock markets along these timelines in addition to the presidents who were in office.
• Instead of buying a Dow ETF, you can pick your 10 favorite Dow stocks and buy a share of each to create your own mini Dow portfolio.

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What Are the Drawbacks of the Dow Jones Industrial Average?

It was the largest amount since 2007, right before the stock market crashed. Stock market gains since the 2008 financial crisis were mediocre in volume. Only three days traded more than 200 million shares, a level similar canadian forex brokers to the late 1990s. Union Pacific’s earnings growth came as fuel costs plunged 23% to $581 million, and the average fuel price per gallon consumed dropped 24% to $2.41. It was the fourth consecutive quarter of average fuel cost declines.

Dow 1250 to 2500: 1,394 days

Union Pacific (UNP) shares surged Thursday after the big freight carrier posted better-than-expected earnings as its costs for fuel declined. In other markets, bitcoin was at $104,000 in late-afternoon trading, up from a low of $101,200 this morning. The digital currency hit a record high above $109,000 on Monday ahead of Trump’s inauguration amid investor hopes that the new administration will adopt policies that support the crypto industry. Traders on Friday expect a 25% chance the Fed will cut rates in March, down from Thursday’s expectations of a 41% chance, according to the CME FedWatch Tool.

• This history of the Dow since the Great Depression demonstrates how stock market fluctuations reflect the natural stages of the business cycle.
• Or e-commerce, streaming, cybersecurity, cloud and software infrastructure, semiconductor innovations, mobile banking, electric vehicles, the energy transition, and more.
• No one knew if a new bull market had begun until the Dow hit a higher low on March 11, 2003, closing at 7,524.06.
• Union Pacific (UNP) gained 5.2% after reporting better-than-expected earnings, while American Airlines (AAL) shares were down 8.7% after the carrier issued a disappointing outlook.
• This high occurred only 42 trading sessions after closing above 19,000.
• You can also do the same calculation for yesterday and DJIA’s value 31 days ago etc.
• NuScale Power (SMR) shares also jumped nearly 14% Thursday, adding 32% this week.