Stock market roars to record highs, S&P 500 closes above 1,700 for first time

  • Article by: CHRISTINA REXRODE , AP Business Writer
  • Updated: August 1, 2013 - 8:47 PM

NEW YORK — Stocks roared back to record highs on Thursday, driven by good news on the economy.

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wplettfanAug. 1, 13 9:33 AM

Is tis another indicator of the terrible economy and what it looks like in the middle of "the worst recovery ever?"

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swallowgumAug. 1, 1310:57 AM

When the Fed stops buying $80Billion in bonde every month infltation is gonna hit hardm interest rates will rise and the S&P and other markets are gonna fall a long, long way.

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atoonceAug. 1, 13 4:12 PM

What do you expect from a socialist-marxist-leninist-fascist president like Obama? You all predicted he would kill the economy, right? Right? Wrong. The only thing that will even dent our economy is if the Reich Wing tries to hold us hostage by refusing to raise the debt ceiling again. Something that had never been done by either party until they did it to Obama.

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dtmonkeyboyAug. 1, 13 4:18 PM

Swallowgum...I think you are incorrect. The contraction in the money supply (credit) was so severe that even with the Feds pumping billions into the economy, it hasn't yet caused inflation. This is in part because consumers have changed their behavior. Instead of taking out more credit or buying, they have been saving. In fact 20% of Millenials have no credit card. Surveys indicate this is a cultural shift which will continue. In addition, because the recession has been going on so long the impact of inflation has been spread over many years. Finally, the true driver of inflation will be fuel prices and with growth in China slowing, they are not likely to increase.

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duck2013Aug. 1, 13 5:19 PM

Stocks roared back ONLY AFTER the Federal Reserve announced it would continue printing $85 billion per month and using it to buy securities to inflate stock and bond values due to WEAK economic growth. People have short memories because just a little over a month ago stock market values DROPPED SHARPLY when Fed Chairman Ben Bernanke hinted that the Fed was considering winding down its money printing to inflate securities values program. The Dow 30 closed at 14,659 on June 24th and barely a month later it is up 969 points AFTER the Fed announced it would continue printing money for its "quantitative easing" program--and this with DISMAL GDP growth less than 2% for the past few quarters. Dismal economic growth in NO WAY shape or form can lead to soaring stock market values but the Fed printing money to artificially INFLATE stock market values can--and that is exactly what is happening. But, there is a reason some people are called "low information voters" and it is the same reason they think what is going on is a sign of good economic and political policies when it is the exact opposite. Never before in history has the Federal Reserve had to print money for 4 years straight to inflate asset values until Obama came along. How can GDP growth under 2%--below historical norms--lead to a 6% increase in stock market values in only 5 weeks? Because the Fed is printing money to inflate asset values. Stocks, bonds, houses, you name it, we are in a bubble and that bubble will absolutely pop and many low information people will be hurt and blame everybody but themselves and who they voted for. Look at some of the comments here and you will see what I am talking about.

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duck2013Aug. 1, 13 5:23 PM

"(Fed) Chairman Ben S. Bernanke is increasingly aiming for gains in stock prices as the Federal Reserve reaches for new tools to spur the three-year recovery and reduce unemployment stuck above 8 percent. Bernanke, setting the stage for a third round of quantitative easing in an Aug. 31 speech in Jackson Hole, Wyoming, said the strategy works in part by boosting the prices of assets such as equities. In a speech yesterday in Indianapolis he said higher stock and home prices would provide further impetus to spending by businesses and households." Source: Bernanke Seeks Gains for Stocks in Push for Jobs: Economy", Bloomberg.com, Oct 2, 2012. Not even the low information voters can attribute soaring stock values to Obama after reading that article, but they will block out the truth and believe whatever they want to believe regardless of the facts. If you have any doubt that the Fed is artificially inflating asset values, let that article remove all doubt.

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kilofoxAug. 1, 13 9:42 PM

I wonder how high it will soar when the Fed stops the money pump. Printing money to prop up a over valued stock market. What could go wrong.

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