We're back to a four-digit Dow.
U.S. stocks fell on Friday, dragged lower by disappointing results from Coca-Cola Co. and a softer profit outlook issued by Microsoft Corp..The Dow dipped all the way down to 9,906.62 on Thursday before bouncing up to close at 10,050.33. That was the first time since late May that the Dow was under the magic 10,000. Since hitting its recent peak in mid-February, the Dow has been on an inconstant downward slide, suggesting the still-outrageous P/E ratios built up over 2003 were, just as in the late 1990s, built on dreams and sand.
For the second day in a row, the Dow Industrial Average slipped below the psychologically key 10,000 level. The blue-chip index dropped below the mark several times in the previous session in volatile trading, but rebounded to end the day higher. . . .
"I think the market is disappointed with what they've seen out of the earnings season and with the economy potentially slowing in the second half ... That implies if earnings are only ordinary in the second quarter they can only get worse in the third quarter," said Peter Boockvar, equity strategist at Miller Tabak & Co.
All this makes those forecasts of 2004 GDP growth put out by the "experts" look more and more foolish. Not as ridiculous as Dow 36,000 mind you . . .