The Dow Hits A Record High As Markets Rally

Matt Nesto analyzes the morning business headlines.
11:26 | 03/05/13

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Transcript for The Dow Hits A Record High As Markets Rally
I -- the opening -- on ABC news now ring the bell this morning executives of -- PS. The financial services firm -- to launch of its new dividend dogs exchange trade fund. And so trading begins with state Tuesday march 5 keep an -- because -- -- could be a very big day for the Dow on debt -- clear in New York. Futures in -- up today on what could be a record breaking day for Wall Street the average hovering just a couple points away. From its all time high annals and it did this job is all caused us some good numbers coming out of Asia and Europe so want to bring in Matt NASA from Yahoo! finance to get a look at the big headlines for the -- today Matt good Tuesday morning to you. Thanks and you to and let's take a look at the Dow is up 34 points and not that far away from that record that was set back in October 2007141160. Sport. And we have now gone past that Matt Asia and Europe the big drivers behind us. Well you -- it's -- number. -- this is at the final leg a lot of it is just sheer magnetism in the law of large numbers they they tend to draw people. -- -- counting down that day for a long time so the fact that we finally. Have printed above it and being so close. Yes it's it's and its many factors have contributed to take us. That this level and -- many tries to. To get -- so it's certainly. You know momentous occasion. Opens up by the flood gates -- -- -- what is on the other side of that door that we've worked so hard to break through for six years individual investors are big institutions feeling this one. It is feeling in terms of -- of the fact that the market strong. Yes right yes it is endemic a heightened attention measures in other medical false starts here they're the past couple of months but. -- I've been hearing warm weather there's really been an individual investor driven rally. The you know it's been hard because it's -- that them the market has defied logic many people said for the most of the first quarter you know we've had any number of reasons. Not device stocks in the face of all. Controversy -- out of Washington and based on the situation. In Europe China you know on any given day depending which story you read. Can look like look look like a buy or sell so in the face of it all we've seen you know investors. Be able to look through it. How many have actually participated. Remains to be seen we have however. Seen a lot of investors growing tired of the bond market and a you know one and a half percent treasury one and three quarter percent treasury yield and moving some money back into equity funds particularly. On the exchange traded -- side -- let me ask you this and any correlation record of success that -- is saying transferring over to main street I tell us about that can be very difficult chemicals on the connections. -- -- connected us and that's exactly -- Ben Bernanke's. Theory in terms of this easy money is to be easy noted -- assets. A strong stock market builds confidence. Has companies hiring. -- you read about it in the paper we talk about it and programs like this. Now bodes well for confidences or sort of -- self fulfilling. Prophecy. All right well -- any -- time again that the Dow reaching over that 141001 -- 64 point now Regina hall of all time high of 141001 -- me now. I'm -- a -- want to talk about juggle and you brought up China the Chinese Government are sitting -- a white paper essentially condemning Google. About some of the practices over there -- over the details of this paper. Well essentially their saying they enter it is too good and they have their own. -- Smartphone operating system that they could roll -- but he android which is an open a software system meaning. You know go for use it do would do it too well of course owned and operated by Google. And you know it's run on any number of you know pick your manufacture but you know the Chinese have come out and you know these papers. There are you know they have a history of leading to other things you know. I think tank is in China which is part of the you know government will -- I don't know about this operating system and -- -- too -- market share and you know maybe we should be doing this ourselves surgery are we losing to its control. To about control so you know you never know where these things are gonna leave so it's it's. And vacuous by itself. It. He speaks well of Google's. Android strategy but you never know where these things could you know how they could -- Not to try to tease out any kind of sense assumption from us about how our elected domestic companies and -- to -- -- do Alibaba Group and -- obviously. Well there is no comparison right there are always -- there was called you know the Chinese school -- things like that right they're not you know mean they do fine but that you know Chinese stocks in general of had a tough year the past three months have been good we've -- the big turnaround in sentiment. In terms of buying those from the markets -- Shanghai's bounced nicely. But you know it's it's day by day mean the sixty minutes piece -- side. The ghost cities. Was unsettling the data there has been mixed the economic promises are you know worth maybe the paper that you write -- but they tend. Try to hit those targets and deliver the number so. You know China is always worth watching what is never going to be you know and easy simple clear -- place to do business. All right back here on the White House -- saying that Americans we should be able to unlock our cellphones and art tablets essentially use whatever subscriber carrier we want to use. Moved back and forth freely without any kind of penalty for that. If a policy were to change and we weren't essentially buy devices and pick and choose who want as our providers kind of company impact -- -- and well you know it's it's hard. Say clearly the sell the wireless service providers have invested and continue to invest tons of money. To keep up with the demand for bandwidth I mean the amount of data that's come and through the air and into your little device of choice whether it's -- tablet or Smartphone. Is growing exponentially so there on the hook for lot of that. But if you look at the big picture think of any other device what's in that there's no other devising by a car. He can drive and any road you wanted to -- TV you plug it in use Anemia in my apartment to cable or satellite dish connection but digging. You know cut the court anytime you want to do so in others definitely. Prize in -- and you look at the amount of money. The consumer spend Natalie on the device to save 500 -- thousand box. Plus another 102 a month for services adds up its big money and so you know there is something to be said. For freeing that up and and and just reinventing the rules but will whether or not it will happen that's a very very powerful. Industry with a lot of a lot at stake and also say -- -- -- to Linda Stein on here. There's a lot of -- between the government and -- -- just spying on people for lack of a more delicate term. Terms of looking at -- so there's some coordination and some negotiating that might not go on in the light -- -- All right well will be -- -- and that we will be going -- additional Smartphones just for the sake that we can kind of bounced between AT&T and Verizon just for that act out what are your thoughts about what's happening over at Heinz the CEO there William Johnson. -- possibly getting an incredibly. Huge severance package if the new owners Berkshire Hathaway. Come in and start shaking things up more than 200 million dollars. For this guy to leave. I'm jealous cut immediately -- If you don't you company right -- -- -- company that was -- that was -- and you -- a sophisticated and knowledgeable Berkshire -- And -- had a guy -- been running for fifteen years to an unbelievable job -- stock is gone from like ten to seventy. He is paid twenty billion dollars. And you know 1%. Of that money of of the value that company might be worth the guy who's overseeing -- for fifteen years. But notes it's unbelievable amount of money but you know he may or may not get it most of it -- stock options that he's acquired over that fifteen year career as the CEO so. You know senior executives that's that's the way -- -- Jobs are out there nice nice work together and get it right exactly. I -- -- -- to take you to lower Manhattan where Martha Stewart is about six stand in the trial involves her. Macy's JC Penney what's going -- with -- Well I guess I see who wins what she's done sprucing up the courtroom down there -- a little bit dark for her you know. This time a year. She will take the stand and you know get involved in this ugly contract dispute between. Macy's and JC Penney -- -- thought she had the exclusive. To us with her and suddenly she cuts a deal would JC -- it's gotten personal on a number of levels. So we'll see what happens but really you know you have JC Penney which is. Dealing with its own. You know -- reinvention with its new CEO -- Martha Stewart. -- company MS so. Which is you know been shrinking itself 40% and it like JC -- over the past years' worth. Less than 200 million dollars now JC -- worth only about three and a half billion. And then you have you know Macy's is trying to get thrown in tough economic times and maintain its own identity it's a much bigger company but. It's certainly has a lot of appeal lot of brand names a lot of personalities. And a lot of people will be watching and interestingly the trivia hounds out there pointing out that it's also. The ninth the anniversary today of the day the Martha was convicted. Of that insider trading scandal. Back in 041. Home owning shares of imclone -- dumping shares of imclone and. That the fact the matter -- say what you will about -- had a lot of people have some very nasty things to say about her at the same time a lot of people say she's a very Smart. A very savvy businesswoman at the same time I think nine years ago lot of people would not Bob -- she's gonna be in the position that she is today. That that being said -- and when a company that is so closely linked mean she is the company and the company is her. The result of this trial how badly think that's gonna hurt the -- is that the shares are -- there -- like 285 a share when like five years ago it was at 36. This idea -- -- about what once again I would say to was when she walked out of jail right she was the damage property her credibility and and the whole thing. Terry Lundgren and and -- stepped up and said you know we're gonna resuscitate this spring we believe in -- it's it's all good. And so they -- whether they were early adopters if you well in terms of the new and improved. Martha Stewart or the -- -- Martha Stewart when she came at a jail so that's one of the reasons why this thing is so personal. Is the CEO of Macy's is said you know I thought she was my friend and you know that's over -- my wife was friends -- things like that so. It's it's -- it's rough you know it it's it's the big leagues though -- how it falls out you know I don't think. You know every every goes -- do you do business with. With whoever I can't imagine that -- is -- -- sit -- and sell a lot of Martha sheets and towels if there are also available in the new JC Penney whether or not that's a thriving business or not. Point well taken our eyes but let's go take one last look at the Dow ninety up 94 points at 141223. Beating that October 2007 record. -- -- -- -- -- historic day have a good Tuesday -- it feels awesome.

This transcript has been automatically generated and may not be 100% accurate.

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