Nasdaq Hits 5000 for First Time Since Dot-Com Era

[Nye Bevan]

The Nasdaq Composite climbed above the 5000-point level for the first time in almost 15 years on Monday, marking a milestone in the revival of an index that once was synonymous with dot-com excess but which now reflects a broad swath of global technology, consumer, health-care and financial firms.

The Nasdaq Composite, which tracks the prices of the 2,571 companies on the Nasdaq Stock Market, briefly topped 5000 at 10:30 a.m. ET, peaking at 5000.33 before retreating. It was the first time the index has traded at that level since March 27, 2000. The Nasdaq traded recently up 30 points, or 0.6%, to 4994.

The Dow Jones Industrial Average rose 112, or 0.6%, to 18245, while the S&P 500 index gained eight points, or 0.4%, to 2112, as U.S. stocks were buoyed by deal activity and economic data that was broadly in line with expectations.

http://www.wsj.com/articles/u-s-stock-futures-little-changed-ahead-of-data-1425302537

[el_bryanto]

1. That's good for people with defined contribution retirement plans at any rate nt

[JaneyVee]

2. Not bad for a Kenyan Muslim Commie Socialist.

[DesMoinesDem]

4. Obama didn't create this bubble and he doesn't want to take credit for it.

It's going to be a nightmare when the Feds bubble pops.

[whatthehey]

5. You mean the bubble that was supposed to pop when QE stimulus stopped?

QE stopped to exactly no fanfare over four months ago...

Or a bubble just because of a funds rate that has been at the same level for years?

This article of faith about a Fed bubble is quite strange. I'm sure there will be some drop in the future, and a recovery following that just as surely, but nothing the Fed is doing now will have anything to do with it.

[DesMoinesDem]

10. Who said it would pop when QE stopped?

My guess is the bubble will pop when the Fed raises rates, but it could be before. The Fed knows this which is why it can't raise rates. The market is going up because the Fed keeps putting of a rate increase.

[B Calm]

3. DOW is doing great too, up 124!

[former9thward]

6. A financial reporter I was watching

said the Nasdaq would have to get up to about 7000 to reach its former high when you adjust for inflation over the last 15 years.

[DCBob]

7. Well, the former high was a bogus inflated number due to irrational exuberence.

This 5000 makes a lot more sense given the current economic and financial conditions.

[former9thward]

8. I think it is somewhat distorted because of Apple.

When the average was at 5000 in 2000 Apple was near bankruptcy. Now it is the world's biggest and most profitable company. I wonder what the index would be if Apple was put in the Dow as some say it should be.

[DCBob]

9. No doubt. Apple is a big number.

But it's probably a fair value based on its profits and future.

[Nye Bevan]

11. 5000 because of Apple makes much more sense than 5000 because of Pets.com and Webvan.

Because Apple actually makes a profit.

[Johonny]

12. but, but, but they said Obama would ruin the economy...