Dow Indicates Economy Moving in Right Direction

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WASHINGTON -- Investors on Wall Street are breathing a sigh of relief after the Dow Jones Industrial average broke 10,000 Wednesday.

It's an important indicator all Americans can celebrate.
 
After months of gloom, Wall Street is jubilant once again.

The news came as a relief since the last time the Dow saw the 10,000 mark it was on the way down.

The milestone represents a 53 percent comeback for the Dow since March when stocks were at their lowest levels in more than 10 years.

"Well, 10,000, let's face it, it's basically a psychological barrier," said David Wyss, chief economist at Standard and Poor's.

It's also the best barometer of the stock market and indicates investors believe the economy is bouncing back after the worst recession since the Great Depression.

"We are seeing that earnings are profitable, they're going to continue to be profitable, and the outlook is good," said Jonathan Corpina with Meridian Equity Partners.

And it's not just stocks -- the outlook is also good for gold, which hit a record high -- more than $1,070 an ounce Wednesday.    

But while stocks and gold rise -- the dollar keeps falling, hitting its lowest level against the Euro in more than a year.

The lower dollar does help American business overseas by making products cheaper.

And that helps boost stocks.

In a recent meeting, the Federal Reserve estimated the economy has picked up and Wall Street is reacting to companies like JP Morgan, Chase and Intel posting better-than-expected third quarter profits.

Although many on main street are still hurting, cheers on Wall Street are good sign. While unemployment is a lagging indicator of the economy's health, the stock market is a leading indicator.

"We are very happy with what we're seeing and investors are feeling we are moving in the right direction toward economic recovery," Corpina said.

Confidence is just what retailers want consumers to have as they approach the holiday buying season.

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