Dow hits 14,000 for first time since fall 2007

The Dow stock market index flirted with the 14,000 line today, bringing reminders of the last time it hit that mark—almost a different era, before the financial crisis rocked the world economy. Propelled by reports on U.S. jobs and auto sales, the Dow Jones industrial average crossed the line and kept its ground through the early afternoon, after flitting back and forth throughout the morning. The other major stock indexes also rose. “There’s a newfound enthusiasm for the equity market,” says Jim Russell, regional investment director at U.S. Bank Wealth Management in Minneapolis. But market watchers are divided over what the Dow milestone—or even what a Dow all-time high, which is quickly approaching—really means. To some, it’s an important booster to hearts and minds, making investors feel optimistic and thus more willing to bet on the market. “The Dow touching 14,000, it matters psychologically,” argues Peter Cardillo, chief market economist at Rockwell Global Capital in New York. “It attracts smaller investors.” To others, though, the Dow 14,000 is nothing but a number on a board, more a sign of how traders feel than an indicator of how the economy is faring. After the Dow hit its all-time record high in October 2007, it fell almost steadily and a year later had lost nearly 40% of its value.