The Dow Jones Industrial Average closed at 52,495.88 on 20 October, 1,853 points under its 5 August record of 54,349.12. Goldman Sachs and Caterpillar account for 1,910 points of that distance, more than all of it, because the other 28 stocks, taken together, closed 0.13% above their 5 August level. In the third quarter Goldman bought back 2.9 million of its own shares at an average of $1,048.73; on 20 October they closed at $884.81. I don’t think the index gets back to its record by 13 November. Further down is how I got there, and the closes that would prove me wrong.
Dow Jones Eyes 53,160 as the Fed’s Hike Cuts Its Record Odds
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Key Points:
- Goldman Sachs alone has taken more than 1,000 points off the Dow since its 5 August record.
- Boeing is 20.7% below its August price, yet has cost the index under a third of Goldman's toll.
- Since 1993, a Fed still raising rates has made a fast return to a Dow record less likely.