Learn what happened in business in today’s past


January 08:


1987: More than 14 long years after it crossed the 1000 mark, the Dow Jones Industrial Average breaks the 2000 barrier, closing at 2002.25. Analysts insist the market will go nowhere from here: Alfred Goldman of A.G. Edwards predicts "a victory celebration and then a headache." Mary Farrell of PaineWebber sees a trading range between 1800 and 2200. Robert Stovall of Stovall/Twenty-First Advisers quips that this is "Groundhog Day" for stocks: The market will "see its shadow, and promptly duck down again." By August 25, the Dow hits 2722.42, up 44% for the year in one of the most spectacular bull runs of all time.

John A. Prestbo, ed., The Market's Measure: An Illustrated History of America Told through the Dow Jones Industrial Average (Dow Jones, New York, 1999), p. 89; http://averages.dowjones.com

1973: The Reserve Fund, the first money-market fund, opens the day after an article in The New York Times reveals the radical features of "Overnight Mutual Funds for Surplus Assets": a yield more than 50% higher than a bank account, plus daily income dividends and redemption privileges and a constant net asset value per share. By the end of January, the fund has $1 million in assets; by year-end, it has $500 million.

Bruce Bent, interview with Jason Zweig, January 28, 2000; The New York Times, January 7, 1973.

1829: On one of the quietest days in Wall Street history, the market is open, but not a single share of stock changes hands.

Walter Werner and Steven Smith, Wall Street (Columbia University Press, New York, 1991), p. 163.