President Barack Obama isn't taking a bow for the Dow Jones Average hitting a record high today, in a shortened holiday trading day, to 17,068.26, closing 92.41 points higher and gaining 1.3% for the past the week, reported Marketwatch.com. Nor is Obama taking a bow for the S&P 500 hitting a record high of 1,985.343, closing 10.81 points higher and also gaining 1.3% for the past week. Nor is he taking a bow on the Nasdaq Composite hitting a 14-year high to 4,485.93, closing 28.19 points higher and finished the week with a 2% gain, its third weekly gain in a row.
But taking that bow is just not Obama's style, but the "Obama Stock Market" is continuing, as the Dow and the S&P 500 have continued on its meteoric rise. On President Obama's first inauguration day on Jan. 20, 2009, the Dow was sitting at 7,949.09. It then bottomed on March 9, 2009 at 6,547.05, which at the time was its lowest level since 1997. On Jan. 20, 2009, the S&P 500 was sitting at 805.22 (record high of 17,068.26) and on March 9, 2009, the S&P 500 was sitting at 676.53 (record high of 1,985.343).
Since that time, all hell has broken loose. Republicans credit the rally to the controversial fed policy of easing, that some economists say can have long-term devastating effects. Still other economists defend the policy and argue the long-term effects will be positive.
Perhaps Obama should take a bow and take credit for the booming stock market that has regained all the losses in 401k accounts during the Bush era. He most certainly would be blamed if the reverse were true, that is, if the Dow or S&P or Nasdaq were crashing.
Obama did take a bow of sorts during a visit to today 1776, a tech hub in Washington, D.C. "We are making progress," Obama said in an understatement. "We still have not seen as much increase in income and wages as we'd like to see," Obama said.
"We've now seen the fastest job growth in the United states in the first half of the year since 1999," he said to cheers and claps from the 1776 crowd
Obama added, "This is also the first time we've seen five consecutive months of job growth over 200,000 since 1999 [more hoots and cheers and whistles], and we've seen the quickest drop in unemployment in 30 years. So, it gives you a sense that the economy has built momentum; that we are making progress. We've not seen almost 10 million jobs created over the course of the last 52 months, and it should be a useful reminder to people all across the country that given where we started back in 2008, we've made enormous strides, thanks to the incredible hard work of the American people and American businesses."
What Obama was referring is that the Bureau of Labor Statistics released its June jobs report this morning, and showed total nonfarm payroll employment increased by 288,000 and that this was coupled with the unemployment rate declining to 6.1 percent. The unemployment rate is the best since Sept. of 2008.
And the private sector has added 9.7 million jobs over 52 straight months of job growth, crawling close to the "magic" 10 million mark. Obama has been criticized that the jobs are not good-paying jobs and that there is an increase in the numbers of part-time employees.
Joe Weinlick, Vice President of Marketing for Beyond.com, says the report is the real thing. "This report isn’t a fluke – job growth across the board is steady and sustained, from manufacturing to business services. Over the past 3 months, job growth has averaged 272,000 per month. Analysts have gotten used to the role of Eeyore, always the pessimist reminding of the gloom to come. It’s tough to be pessimistic about this report."
Weinlick pointed out that "Job seekers are resourceful." Beyond.com recently surveyed over "4,000 job seekers on Beyond.com to find out what new tactics they might be using to find work. According to the responses, 83% said that they search for jobs on their mobile devices. And, many users have adopted a multi-platform approach, searching on smart phones, researching on tablets, and applying on computers. The ubiquity of technology has made looking for work much easier, and this rise in jobs might be due in part to job seeker adaptation."
To support Weinlick's conclusion, Marketwatch.com, saying "The U.S. is not just adding jobs at the fastest pace since the end of the Great Recession. Hiring is also more spread out and the new jobs pay better than in years past."
Marketwatch.com agrees with Weinlick, saying, "more than half of 2014′s new jobs pay higher than average wage. The U.S. is not just adding jobs at the fastest pace since the end of the Great Recession. Hiring is also more spread out and the new jobs pay better than in years past."
Some 58% of the new jobs created in 2014 pay above the average hourly wage of $24.45. By contrast, about 48% of the new jobs created in 2013 paid above the national average, according to a MarketWatch review of the data.
"The report was very good and a real sign the economy is starting to take off," David Kelly, chief global strategist at J.P. Morgan Funds in New York, told Reuters. His firm has about $450 billion in assets under management. "That said, it isn't an unmixed positive for the market because it suggests the Fed will consider raising rates in the first quarter."