Iowans are keeping an eye on Wall Street today (Wednesday) as the Dow Jones Industrial average crossed the 12-thousand mark for the first time. Financial analyst Jim Tausz, of Clarion, says it’s an exciting day for people in his industry.
Tausz says “We’re doing well. It’s not as much a financial boost as it is a psychological one. You have these certain things that make people feel good all over and there’s no doubt about the Dow hitting a 12-thousand mark is a warm and fuzzy.” He says people who don’t follow the stock market may not have much of a concept about the significance of the numbers.
Tausz says “Let’s say we’re at 11-thousand not too long ago and all of the sudden you’re up to 12-thousand. A lot of you need to put that in perspective. The difference between 11-thousand and 12-thousand is, and I’m just rounding this off, around ten-percent.” This morning’s surge in the Dow came after a report was released on new inflation numbers that indicated consumer price pressures are easing. Tausz says the ten-percent gain into new territory for the Dow is a landmark.
Tausz says “It’s a small number when it comes to percentages but it’s a big thing for a psychological boost to the marketplace.” Reports from Wall Street indicate the big drops in gasoline and other energy products contributed to the declines in consumer prices last month. The fall of one-half-a-percent in the Consumer Price Index is the biggest drop in ten months and reflects a drop in energy prices of more than seven-percent.