Stock market chugging along

Since March, the market has been climbing, delivering double-digit growth to most major indices. even as the overall economy has sent mixed messages.  "It's been resilient. There's no question about that," said Vince Russell, director of sales and marketing at Mead Adam & Co in Dayton.

Stock market watchers point to many reasons for this run-up -- including a short war in Iraq and better earnings reports -- and say it signals the overall economy should improve in the next few quarters. Still, doubts persist, though some local companies have seen some positive signs in the past few months.

Robert Premus, professor of economics at Wright State University, cautioned the stock market is just one of the key indicators for future economic growth. He said issues such as consumer spending, business spending and possible trading difficulties with Europe and Canada on the horizon present difficulties for the economy along with the good news.  "We're getting a very mixed picture on this," he said. "I guess only time will tell."

Jack Schannep, editor of the TheDowTheory.com in Tucson, Ariz., said the Dow Jones Industrials index technically became a bull market when it rose 19 percent for the third time on May 12 from its October trough.  As of June 25, the Dow was up about 25 percent, closing at 9,011.53.  The Standard & Poor's 500 has shot up 26 percent since October and 22 percent since a retrenchment in March. Meanwhile, the tech-heavy Nasdaq has put in a performance investors haven't seen in years, climbing 19 percent alone this year and 44 percent since October. "Economic expansions have always followed that kind of (market) move up," Schannep said.

Economic signals

Schannep and others say the rising stock market is a better indication of what's to come than indicators such as unemployment and consumer confidence, which are still lagging.  A few economists hold optimism as well. Economists at Chicago-based Bank One and Columbus-based Huntington Bancshares expect the economy to grow about 3.5 percent in the second half of the year.