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CONTACT: SCOTT HAUSER
100 Old Public Library
Iowa City IA 52242
(319) 384-0007; fax (319) 384-0024
e-mail: scott-hauser@uiowa.edu

Release: Immediate

 

MEDIA ADVISORY

UI SOURCE:

STOCK MARKET APPROACHES 9,000

Reporters and editors looking for commentary on U.S. stock markets as the Dow Jones Industrial Average approaches the 9,000 milestone may want to contact Timothy Loughran, University of Iowa assistant professor of finance and an expert on the market.

Loughran says the 9,000-mark is an impressive achievement for the Dow, but he says such milestones will come more frequently in the future if the current pace holds because the percentage growth needed to hit each one is not as steep as the market rises. The Dow closed Thursday at 8986.64, up 118.32 for the day.

For the Dow to go from 9,000 to 10,000 would take growth of 11 percent, but going from 1,000 to 2,000 was a change of 100 percent, Loughran points out.

"The milestones will come faster and faster," he says. "But low inflation, good economic growth, low oil prices, and less concern about possible fallout from the southeast Asian crisis are combining to fuel the growth that we've seen recently."

Loughran can be reached at (319) 335-0882.

4/3/98