Financial Review

Financial Review for Wednesday, April 30, 2014 – Record Highs in First Gear

Record Highs in First Gear by Sinclair Noe DOW + 45 = 16580.84 (record close)SPX + 5 = 1883 NAS + 11 = 411410 YR YLD – .04 = 2.65%OIL – 1.59 = 99.69GOLD – 4.60 = 1292.30SILV – .29 = 19.25 Back on December 31st, we finished the old year with a record high close on the Dow Industrial Average at 16,576; since then the index has bobbed up  and down, briefly hitting an intraday high of  16,631 on April 4th, but on that day we finished in negative territory. Today, a record high close. The S&P 500 is closing in on the record high close of 1890, but not today. Now, when you hear the Dow is breaking records, you might think the economy is roaring, cruising along the highway in fifth gear. You would be wrong; the economy is stuck in first gear and the clutch is slipping. The Commerce Department reports the economy expanded at a mere 0.1% annual pace in the first three months of the year, one of the weakest rates of growth in the nearly 5-year-old recovery. A slowdown had been expected due to the harsh winter weather that froze business activity across a large swath of the country, but this report was worse than expected. The gross domestic product had been expanding at a 3.4% pace in the second half of last year. No worries, the weather has warmed and everything is returning to normal. Yeah, not exactly. There has been a …