The Dow Jones Industrial Average closed above 17,000 for the first time in history in a shortened session on July 3, 2014. The average flirted with the historical mark for the past week but finally broke the barrier following a job report that included 288,000 new jobs (the fifth straight month of gains greater than 200,000) and the lowering of the unemployment rate to 6.1% from 6.3%.
According to an article by The Wall Street Journal, traders continue to monitor future actions by the Federal Reserve as part of the ongoing interest rate process. Charles Goodson, a member of the Energy Advisory Council of the New Orleans Branch of the Federal Reserve Bank of Atlanta, told OAG360 in April that he expects the Fed to be out of the bond buying market by October or November of 2014. “We will probably see a quarter point rise in Fed rates probably by the second half of next year,” he said.
Oil & Gas Industry Fueling the Rise
OAG360 recently published an article detailing the growth of the oil and gas industry compared to the rest of the US economy, including the industry single-handedly contributing 9.5% of overall GDP growth from 2008 to 2012. The job reports, along with the stock market, have consistently shown signs of improvement since 2008. In fact, the Dow Jones Industrial Average closing price on July 3, 2014 is up 87.9% compared to the closing price at year-end 2008.
The S&P Energy Index has shown even greater signs of growth and has increased by 133% in the same time period. The index for companies participating in EnerCom’s The Oil & Gas Conference® has increased by 158% in the same time frame. The Oil & Gas Conference 19® is scheduled for August 17 – 21, 2014, in Denver, Colorado.
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