The Dow Industrials tops 12,000 for the first time since 2008. The Dow Jones climbed to 12,006 early on Wednesday. Of course that was in early trading, so the big news will be if it closes over 12,000.
Part of the reason for the Dow Industrials increase is because of President Barack ObamaÂ’s call for corporate taxes overhaul in last nightÂ’s State of the Union address. The president wants to close corporate tax loopholes which would allow for lower corporate tax rates.
If this actually happens, it will be the first tax cut for corporations in the past 25 years. Apparently the idea of lower taxes has made lots of traders happy.
Couple this information with the fact that housing data actually beat the estimates, and things are looking up despite weak earnings for several companies. Also, many have speculated that the Federal Reserve will continue supporting the economic recovery.
Overall, this has to be a good sign for the economy. Hopefully, the Dow JonesÂ will sustain this positive movement. How have you been affected by this upbeat news?
Â© Copyright: News Today Online by Kate JamesÂ at Gather.com