Here's What Dow 20K Means for the U.S. Economy - TheStreet

Here's What Dow 20K Means for the U.S. Economy

Dow 20,000 isn't just a number -- it's a sign of a healthy economy, according to one economist.
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Dow 20,000 is a positive for the U.S. economy, according to Gus Faucher, deputy chief economist for PNC Financial Services. Faucher said Dow 20,000 is a reflection of what investors think about the health of corporations, believing that profits will grow strongly in 2017. He noted that a strong economy and lower corporate taxes are also a positive for companies, and that's being reflected in stock prices.

Faucher said Dow 20,000 is also good news for consumer spending, since household wealth is tied up in the stock market. He said that when stock prices are higher, households have more money, and they become a bit more willing to spend.