Dow up 258 as investors cheer new year


By Charley Blaine and Elizabeth Strott Stocks enjoy their best opening day of trading since 2003 -- and ignore the worst report on manufacturing in 28 years. Energy prices rise even as Russia and Ukraine say a natural gas dispute won't cause shortages in Europe.What a difference a year makes.A year ago, the Dow Jones industrials fell 221 points on the first day of trading, and the market went downhill from there. On Friday, the first trading day of 2009, the Dow jumped 258 points, or 2.9%, to 9,035. That was the second-biggest point gain ever for the first day of the year, exceeded only by a 266-point jump in 2003. The percentage gain was its sixth-best ever for a first day of trading.The cheery close was the Dow's first close above 9,000 since Nov. 5. It was the S&P 500's best close since Nov. 5, and the Nasdaq saw its first close above 1,600 since Nov. 10.The rally seemed powered by relief that 2008, the worst year for U.S. stocks since the 1930s, was over. It also reflected optimism that a combination of enormous federal aid to the banking system and a big economic stimulus plan expected from the incoming Obama administration will boost the economy.At the same time, stock performance in the first five days of a new year, and January overall, has been a good predictor of how the full year will go. Since 1950, an up January has led to annual gains more than 90% of the time, the Stock Trader's Almanac says. Every down January has either presaged a flat market or worse. …
Last year was a nightmare for nearly all investors. The Dow's 33.8% loss for the year was its worst since 1931 and its third-biggest loss ever. The S&P 500 slumped 38.6% in 2008, its worst performance since 1937, and the Nasdaq lost 40.5%, its worst yearly loss since the index was created in 1971. But after falling roughly 50% between their peaks in October 2007 and Nov. 20, stocks have been moving higher.




PS: Last year was a nightmare for nearly all our investors. But success will come after failures ! We hope that !