Word: dowe
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Dates: during 1980-1989
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Judging by the close of the Dow Jones industrial average on Friday, nothing much happened on Wall Street last week. The Dow finished at 1277.72, up a mere 1.66. In fact, that was only the end result of a heart-stopping, up-and-down week of heavy trading and tumult, of ecstasy and then anxiety. On Tuesday the Dow surged nearly 15 points, to close at a historic peak of 1292.62, breaking the previous record of 1287.20, set on Nov. 29, 1983. No sooner had the shouting stopped, however, than institutional investors, including pension funds, insurance companies and bank trust...
Despite the late-week cooling of the Dow, which is based on the stock prices of 30 major companies, including General Motors and Westinghouse, hundreds of second-tier stocks stayed hot. Several broad indexes, including Standard & Poor's 500 and the New York Stock Exchange composite of 1,200 issues, set record highs day after day. Only on Friday did they dip a bit. Thursday's session marked the 19th consecutive trading day in which rising stocks outnumbered losers, another Big Board record. The string was broken on Friday, but volume for the week was 652 million shares, the fourth...
Many small investors have been buying the so-called go-go issues in hightechnology industries. Busy trading in such shares has helped push some stock indexes to new peaks. "If you just followed the Dow," says Prudential- Bache's Wachtel, "you would have missed the parade." Last week both the Standard & Poor's index of 500 stocks and the New York Stock Exchange composite of 1,200 issues reached record highs...
...differences between the various market barometers lead some market watchers to dispute the value of the Dow index altogether. The widely watched indicator consists of stocks of 30 major companies, including IBM, Eastman- Kodak and Minnesota Mining & Manufacturing. "You can no longer tell what 35,000 stocks will do by watching just 30 stocks," says Wachtel. Philip Fernandez, an institutional analyst at Bateman Eichler, Hill Richards, agrees: "The Dow is too exclusive and too narrow...
...always possible, of course, that last week's market rally was simply the latest example of a well-known Wall Street phenomenon called the Super Bowl indicator. According to popular lore, the Dow Jones industrial average rises in years in which a team from the original National Football League wins the Super Bowl and declines when a member of the old American Football League is victorious. "Its reliability is uncanny," says Shearson Lehman's Furniss. That rule of thumb has been right in 16 of the past 18 years. So when the San Francisco 49ers of the original N.F.L. trounced...