Various Economic Factors Send Dow, S&P 500 to New Highs

Jobless claims, news from Europe and strength in manufacturing bring confidence to Wall Street.
7:04 | 08/01/13

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Transcript for Various Economic Factors Send Dow, S&P 500 to New Highs
This is a special report from ABC news. I'm Dan -- -- -- with an ABC news digital special report and live coverage of the closing bell on Wall Street on -- -- regular about the -- at the podium. Executives and guests of Richmond Virginia based freight path communications. Now. Ten examples of those free -- today Thursday August 1 Wall Street roared today the S&P 500 index jumping about. 17100. For the first time ever. Enjoy and they had a talk about that and -- -- -- -- rally on Wall Street Yahoo! finance is Aaron task -- thanks for joining us afternoon. Before we get to the S&P M minutes -- take -- look at the big -- see how things -- close -- -- for the -- the Dow is -- 125 points 151625. -- What's behind the rally. And again there's this good news all around to hear a -- -- -- had -- string of economic data. In the past 24 to 48 hours including today jobless claims -- the lowest level since January 2008. I SM manufacturing hitting a two year high. Better than expected data out of Europe all of a sudden not looking dead. Had been looking dead the Chinese -- -- was better than expected so. So you could get a picture that the global economy is better than people were fearing. And at the same time the Fed yesterday told us that they are still really concerned about inflation being so low which means they're not gonna take -- -- -- punch bowl anytime soon. So it really -- is goldilocks on Wall Street right now and September is looming ever closer as we've been -- now being and -- month and that was a lot of speculation that in fact that quantitative easing program. Might be tapered off but as we heard yesterday he pointed out. That's -- that's -- -- -- you -- yet the -- there's not enough economic and it's -- -- that again not too hot not too cold. The economy is growing but not so fast that the Fed feels like they got to take a punch bowl away singer in this -- Where you have growth. And you have a very accommodative fed to the wind really is that your back if durable and tell about the fact the S&P 500 out in record territory. Yeah there's different and that about 17100 I -- I think a lot of us focus on the Dow it's. It's the number of Reno's biggest -- -- with the pros look at what they care about -- and 17100. It's a really big number I don't think many people on the street were expecting it at least not this fast. You know we've had a a big rally all -- -- a little bit of it did it earlier in the summer but July was a robust month. And here we are any it is kind of across the board and he had a number of companies out today. Met life Procter & Gamble. DreamWorks all would be a very strong earnings across different sectors -- -- strong auto sales that you know bumping up Ford and GM stock. CBS did really well -- their numbers and then. You have an IPO and nothing gets Washington more -- -- PO sprouts farmers market more than doubled today. Again another sign the animal spirits alive and well right now I'm -- What about Taylor about a year -- the IPO -- was on everyone's mind was FaceBook and that stocks pretty well. Yes FaceBook the move was left for dead I mean it -- -- thirty dollars a share a little over a year ago and it fell below eighteen dollars people says forget it it's the worst IQ and history maybe it was. But now the right back just below that IPO price and all of a sudden. FaceBook is everybody's favorite momentum stock which is kind of crazy to think about the day they put out numbers last week that were much better than history was looking for. And they seem to have figured out how to make money off mobile devices which is the holy Grail for anybody right now. They went from basically 0% of the revenues to over 40% of -- revenues in the second quarter were from mobile devices. Now they're stories about they're gonna sell TV like ads on FaceBook and there's going to be a lot of advertisers. Lining up to try to put ads in your FaceBook -- not that -- vascular. Look the crystal ball or anything like that. Anyway I guess sort them but are you all all -- all of those characteristics that you put an almost treason driving factors for this rallies after that you put out early the jobless claims. Over knowledge the over overall -- -- that the Fed has the economy is bars not reducing that quantitative easing program any time soon. How long do we expect this momentum to -- That's right it's a really big question because -- -- me the time you should be the most worried is when there's nothing to worry about rape and and right now there's so much good news. You have to worry that the market you know is setting up. For some kind of set back when. You know a big company disappoints on earnings. Or Ben Bernanke's role that -- that is as you know what I do feel like tapering today and says something at the market doesn't like so there there's always risk in the market. But the reality is the stock market even though it's an all time high. Is not very expensive on a valuation basis and the key pieces the way professionals -- -- And you know you still have a lot of investors -- -- on the sidelines for five plus years because they got so burned after the 2008 crisis. And just now saying all right I'm gonna put some money back into stocks and are doing -- holding their nose. You really don't hit a peak until -- -- you can't lose in the stock market like we were back in 1999 a -- 2007. So I think we're a long way from that. -- market fall tomorrow can be down three to 5% you -- have a 10% correction anytime but. But right now I do think -- -- momentum excuse me is with the bulls and -- -- -- stay there at least a little while longer I wanna get your thoughts and your insight on this one maestro arrived before that you go developing this afternoon on the fraud case against a former Goldman Sachs trader. -- known as a fabulous -- Yes -- beast fabric store -- -- a French born Stanford educated trader he was a Goldman Sachs. Basically accused of misleading his clients about some of the very esoteric and sophisticated mortgage backed securities that he was selling them. Right before the crisis in 2008. Was found live on six of seven charges it's a big win for the SEC. It's a big loss -- for the fabulous fab who I think is really guilty of having some youthful hubris and -- emails that made him look like. You know he was a big guy on Wall Street in doing these big deals and I'm gonna -- -- is gonna lose. And frankly I think he's a fall guy I mean. If he was a low level salesman -- Goldman Sachs and he's getting it find and probably -- securities industry for life. Goldman Sachs they paid a fine over the same charges a couple of years ago which for them was pocket change shrine you know they found under the -- -- -- 500 million plus but still for them that's not a lot of money. -- and they sail on they continue to generate huge profits but this guy's career is over and and something just doesn't seem right to me about. That could could be the fog either we'll have to wait and see if in fact that will be the ones art -- -- -- Yahoo! finance Aaron thank you of course. Right now the big news from the SP 500 in record terror -- -- about 17100 for the first time ever and the Dow also trading up. Closing up -- 128 points at 151628. I'm Dan that's our new York and this has been an ABC news digital special reports. This has been a special report from me.

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

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