Dow Closes Above 18,000 for First Time

U.S. economic data powers stocks higher.
3:29 | 12/23/14

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Transcript for Dow Closes Above 18,000 for First Time
I'm Michelle Brandt that a New York as the financial markets close on Wall Street for Tuesday December 23 this is story stock. And very is take a look that tape from earlier this morning. As the Dow Jones industrials composed of thirty of the biggest companies in the US tops 181000. For the first time ever a major milestone for the index tracking the nation's blue chip stocks. And that move today topping 181000 mark yet another high point for the bull market now nearing almost six years. In the making to explain what was behind today's move I'm joined by Daniel Douglas Gabriel of the Washington Post hi there. There is good stocks pushed up higher today because of a strong GDP report what exactly what's in the report that grabbed investors'. What's so impressive about this report is that it moves the actual growth number for the third quarter up from two point 9% to 5%. Now that's a whopping and change indifference of what we've seen as far as sort of growth that the economy's been able to sustain the last few years has been 2% 3% here and there. But to really get to that 5% mart says that this kind of economic recovery is sustainable and investors are reacting to that. All right we'd had nearly six years of gains so far in the market many. Say that the Fed fueled rally are they right. Part but I think also released scene to strong economic fundamentals the kind of things that we wanna see if you want this kind of recovery to be sustainable. Large inventories better sales generally a pickup in consumer consumption Jim more generally so it's not just the Fed interest rate cuts though that has had something to do with the kind of growth that we've seen but I think that now the market is expecting. The rates to rise and so they're taking that into account so the kind of reaction that we're seeing lately. Is not just these the kind of shallow we response to the potential witness that is gonna go. Our rights since there is a buzz of the look those low interest rates going away. Does it look like the economy will be able to handle this and keep the market gains going. I think more now so than ever row the economy could certainly handle any kind of a great change because we've seen so many quarters of the sustained growth a lot of it's not just having to do with where the Fed's going with their interest rates but also having to do with really strong fundamentals and inventories in the also in consumption and an actual manufacturing which had underpinned like the solid kind of growth that we need to see an order for this kind of recovery to continue. All right retail investors such as mom and pop have missed out on this rally. Well they finally get a chance to jump back again after a milestone of eighteen thousands reached. You know that kind of numbers looks really great and spectacular is sure to draw some more retail investors in the teeth and a lot of Americans are invested in the market through their 401 k.s. And after seeing such awful a devastating. Kind of falls. In their for a would keep portfolios after 2008 now has agreed time for them to be able to rebuild that retirement savings and perhaps as a result of seeing that want to come in with their own separate kind of a stock portfolio to take advantage of this would've growth. Right Daniel then looked Gabriel from the Washington Post thanks as always for joining youth. You've been watching stories stock they would abcnews.com. For your latest headlines I'm Michelle Franzen in New York.

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

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