The Dow and the economy - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

The Dow and the economy

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KENNEWICK, Wash.-  The Dow Jones Industrial Average behaved Thursday much like it did Wednesday.  Rising above the psychologically important 12,000 mark and then closing just below.

Before close Wednesday the Dow reached the highest point we've seen since June 2008. A financial consultant in the Tri-Cities says we still have a long way to go, but that we're seeing gradual growth in the economy.

"Stock investors tend to be forecasting that the economy over the next several months will be improving. so they're willing to invest at these prices. and that pushes the stock index higher as they invest," says Stan Allred of D.A. Davidson & Co.

Allred says unemployment is still far too high and the housing market is still too low, but stocks and bonds going up is a good sign.