Business

Commentary: The Dow just broke 50,000. Here’s what that means

Published

1 month ago

February 6, 2026

Commentary: The Dow just broke 50,000. Here’s what that means

The Dow Jones Industrial Average just crossed 50,000 points for the first time, but that doesn’t mean the economy is healthy

Round numbers always enchant humans, especially when they’re big round numbers.

So you’ll probably be reading and hearing a lot about how the Dow Jones Industrial Average crossed the 50,000-point threshold Friday for the first time.

Actually, “threshold” isn’t the right word. The mark’s significance is psychological, if that.

In real terms, nothing got triggered at that moment, which happened at about 2:27 p.m. Eastern time. No rules or regulations changed. In and of itself, it won’t create a jump-up in anyone’s personal net worth.

It’s doubtful that any trading algorithms kicked in, except those that might have been keyed to a sharp reversal of trading sentiment from earlier in the week, when it was pretty sour.

Still, the chances are that attention will be paid. The Dow gained 1,206.95 points or 2.47% Friday, closing at 50,115.67.

If you’re inclined to make a bet, you might put your money on the likelihood that President Trump or his minions will take this to mean the overall economy is firing on all cylinders, thanks to his policies. It doesn’t mean that.

So let’s dig a little deeper into the meaning of this particular round number. We can start by noting that the Dow not only doesn’t rank as a reliable picture of the U.S. economy, it doesn’t rank as a picture of the stock market as a whole. It’s a price-weighted average of only 30 stocks, with higher priced stocks having a bigger influence on the average, while the Standard & Poor’s 500 index tracks, well, 500, and the Nasdaq Composite more than 3,000. (Both those indices moved sharply higher Friday, too.)

Yet I confess I have a soft spot for the Dow. That dates from the 1980s, when it was treated as more of an economic bellwether than now, and I was the New York financial correspondent for The Times.

The Dow had been running up fairly smartly, and I pleaded with the business editor, the revered Paul Steiger, to rescind the rule mandating that I write a story on any day when the average moved 20 points or more. However, I got his agreement that the day it broke 2,000 points for the first time, I would write that story.

And I did! That day was Jan. 8, 1987.

“It’s a milestone because round numbers intrigue everyone,” Newton Zinder, chief market analyst for E.F. Hutton & Co., told me at the time.

William LeFevre, market strategist for the Hartford-based investment firm of Advest, added: “This will bring a lot of little investors into the market, because the publicity associated with it focuses a lot of attention on the Dow.”

But as I observed then, hullabaloo over “milestone” numbers is typically misplaced. The Dow’s first close over 1,000 was greeted with great fanfare on Nov. 14, 1972, when investors and Wall Street professionals read it as a sign that explosive economic growth lay in store for 1973.

Market analysts were nearly unanimous in forecasting that the Dow could rise an additional 150 to 300 points within two years.

Sadly, no. It took nearly 10 years, or until October, 1982, for the Dow to reach even 1,100.

Any optimism the 2,000-point mark inspired also proved to be misplaced. The Dow suffered a major crash of 508 points on Oct. 19, 1987, only nine months later.

Comparing the trajectories of the U.S. economy and the stock market over the four decades since Dow 2,000 is an interesting exercise. In the first quarter of 1987, U.S. gross domestic product was $4.72 trillion, or $13.77 trillion in today’s dollars.

Today it’s $31.1 trillion. So the U.S. economy has grown by 558% in nominal terms, or 125% adjusted for inflation.

In that same period, the Dow Industrial average has grown by 2,400% in real terms, or an inflation-adjusted 758%. The S&P 500 has grown by 2,588% in nominal terms, or an inflation-adjusted 821%.

Dissertations can be written about what these comparative numbers say about, first, the long-term strength of the U.S. economy and, second, whether its majestic growth in wealth is distributed fairly. But they certainly document that corporate and capital valuations have handily outstripped economic growth generally. The bottom line is that few American households feel as if their wealth has grown by 2,400% in the last 39 years, or even 758%.

As for whether it’s possible to read conclusions about the economy in the Dow Industrial figures, it’s hard to discern a clear pattern. For one thing, the 30 components change over time, as the average’s owner, a joint venture between Standard & Poor’s, and the financial services company CME Group.

There’s a bit of gamesmanship involved in these decisions — the most recent change, in November 2024, substituted chipmaker Nvidia for chipmaker Intel. The change kept the average consonant with the evolution of the semiconductor market; Intel shares had lost half their value in 2024, while Nvidia had more than doubled, riding the wave of its dominance over the AI chip market.

Nvidia validated the average-makers’ instincts: Its gain of 7.78% Friday powered much of the average’s advance. Big percentage gainers included Caterpillar (up 7.06%), Goldman Sachs (4.31%), JPMorgan Chase (3.95%) and Walmart (3.34%).

Somewhere in there may lie truths about the semiconductor, banking, retail and manufacturing sectors, but one day’s results probably don’t tell the whole story. Nvidia’s gain came on the heels of a nasty week — the stock had lost 10% of its value since Jan. 29.

History tells us that its unwise to take solid conclusions from short-term action in the Dow or any other index. Friday’s gains could mark a lasting recovery from the market meltdown of recent weeks, or could be what market followers call a “dead-cat bounce,” and the cat is still dead.

For the moment, still, the Dow had a very nice day. That doesn’t mean the euphoria will last.

Business

This $100,000 EV from Sony is part gadget, part gamble and only available in California

Published

6 hours ago

March 13, 2026

Press Room

This 0,000 EV from Sony is part gadget, part gamble and only available in California

As electric vehicle makers struggle to remain relevant, a new competitor is about to hit California’s roads.

It is stuffed to the sunroof with speakers and screens, and it’s a Sony.

Sony’s joint venture with Honda, Sony Honda Mobility, will launch a luxury EV brand called Afeela just in California this year.

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The sedan is a brash bet that the two old-guard brands can succeed where others have struggled.

“We believe customers are looking for more than just a means of transportation” in their luxury EVs, said Sony Honda Mobility President and Chief Executive Shugo Yamaguchi in a statement to The Times. “They are looking for technology, safety, design, and a personalized experience.”

Afeela vehicles aim to do for driving what the Sony Walkman did for walking.

They have 28 speakers, wraparound screens, an AI assistant and an entertainment system for Karaoke or playing Sony PlayStation games.

The interior of the Afeela vehicle at Afeela Studio in Beverly Hills.

Even as the end of government incentives for EVs has taken the air out of the market, Sony and Honda are hoping there are enough high-end Tesla buyers who may be looking to try something different.

Some EV enthusiasts have been alienated by Tesla Chief Executive Elon Musk’s affiliation with President Trump, who has strangled government support for green vehicles.

In West Los Angeles, a big Afeela ad above a Tesla dealership puts the EV leader squarely in its crosshairs.

“Get stares, not glares,” the billboard reads, with a glamour shot of a sleek, silver Afeela 1.

Tesla’s market share in California slipped to 48% last year from around 53% a year earlier.

Honda’s own EVs haven’t been wildly successful but their market share in California edged up to 3.8% last year compared to 1.8% a year earlier.

Afeela is entering the market at a time when federal support for EVs is low and public enthusiasm is faltering.

Major automakers including Ford, General Motors and Stellantis are paring back their EV ambitions. Lucid, a Newark, Calif.-based EV maker, has been struggling to turn a profit and recently laid off more than 300 employees.

Irvine-based luxury EV maker Rivian said last year that it was laying off more than 800 workers as it looked to cut costs.

Afeela has showrooms in San José, Beverly Hills and Century City. The company is manufacturing the cars at a Honda plant in Marysville, Ohio, and will make its first deliveries at the end of the year.

The Sony and Honda joint venture is in the midst of legal obstacles as it aims to build a solid reputation. Last August, the California New Car Dealers Assn. filed a lawsuit against American Honda Motor Company and Sony Honda Mobility, alleging that the companies violated franchise law by selling Afeela vehicles directly to consumers rather than through Honda dealerships.

Various display screens inside the Afeela vehicle at Afeela Studio, Beverly Hills.

For now, Californians can reserve an Afeela 1 for a $200 deposit. Selling only in the Golden State at first will allow the company to learn from an engaged customer base, said Yamaguchi.

“California is one of the most advanced markets for EV adoption, grid infrastructure, and new mobility technology,” he said. “It also represents a culture of innovation and creativity that aligns well with the Afeela vision.”

The company is planning to begin sales in Arizona next year.

The car comes in two trims, starting at $89,900 and $102,900. Both trims come with level two automation. When using a vehicle with level 2 automation, the driver must remain in control and attentive while the system assists with braking, acceleration or steering.

Sony and Honda are looking to capitalize on growing interest in self-driving technology and plan to eventually equip all their vehicles for full autonomy. The Afeela 1 comes with 18 cameras, nine radars, 12 ultrasonic sensors, and lidar, a laser-based radar that Waymo uses to power its autonomous taxis.

“You do have to pay attention and we definitely don’t want people to believe that they can just go to sleep behind the wheel,” said Raisu Williams, an Afeela engagement operations associate. “But we are aiming for that level four autonomy, where you don’t have to drive at all.”

While some of Afeela’s tech may have a leg up on the competition, the brand will have to prove there’s healthy demand for it at that price, said Brian Moody, an auto industry analyst.

“Tesla and its platforms are aging, and the Lucids and Afeelas of the world feel more modern, more futuristic,” Moody said. “We’ll see if the car can make the jump from early adopters and tech-type people to the mainstream.”

The AFEELA logo sits on top of a rear cameras of a Afeela vehicle.

(Ronaldo Bolanos/Los Angeles Times)

Afeela is hoping to have more success than Lucid with attracting a wide audience. Lucid laid off more people this year after laying off around 6,800 people in 2024 and hiring actor Timotheé Chalamet as a brand ambassador.

“I do think Afeela is in danger of heading down the same road as as Lucid,” Moody said. “If those cars can be successful in California, will that translate to success throughout the rest of the country and the world?”

Sony Honda Mobility got its start when the two founding companies formed a strategic alliance in 2022. The new company unveiled its first Afeela prototype in 2023 at the Consumer Electronics Show in Las Vegas.

CEO of Sony Honda Mobility Yasuhide Mizuno presents the AFEELA 1

Auto industry experts said Honda’s bet on Afeela is somewhat risky for the major automaker, but it could pay off. Because Sony and Honda each own 50% of Sony Honda Mobility, the companies reduce their liability by sharing risk, said auto analyst Kristin Shaw.

Honda has popular gas-powered models such as the Pilot and the CR-V to fall back on if their ambitions with Sony fall through.

“Honda’s bread and butter is still in their production vehicles,” Shaw said. “Honda is hedging its bets across the board, and Afeela is one way for them to explore what could happen.”

Business

Video: Indian Kitchens Face Fuel Shortage From War in Middle East

Published

17 hours ago

March 13, 2026

Press Room

Video: Indian Kitchens Face Fuel Shortage From War in Middle East

new video loaded: Indian Kitchens Face Fuel Shortage From War in Middle East

The fuel that powers Indian kitchens has been harder to get since the start of the war, which effectively shut a critical shipping lane for gas imports that India’s population relies on.

By Shawn Paik

March 13, 2026

Business

Universal Pictures will now keep its movies in theaters for at least five weekends

Published

18 hours ago

March 13, 2026

Press Room

Universal Pictures will now keep its movies in theaters for at least five weekends

Universal Pictures will now keep its new films in theaters for at least five weekends, a reversal from the studio’s previous policy of at least 17 days that was set during the pandemic.

The change takes place immediately, the studio said Thursday. That means it will apply to its newest film, the Colleen Hoover romance “Reminders of Him,” which is out in theaters this weekend. Other upcoming films include Christopher Nolan’s “The Odyssey,” which will be released in July.

“Our windowing strategy has always been designed to evolve with the marketplace, but we firmly believe in the primacy of theatrical exclusivity and working closely with our exhibition partners to support a healthy, sustainable theatrical ecosystem,” Donna Langley, chair of NBCUniversal Entertainment, said in an email to the New York Times, which first reported the news.

Focus Features, Universal Pictures’ specialty film arm, will keep its existing theatrical exclusivity policies, which vary on a case-by-case basis. Chloé Zhao’s “Hamnet,” for instance, was in theaters for 99 days, while 2024’s “Nosferatu” played for 58 days. The minimum is 17 days.

The amount of time films are available exclusively in theaters — known as “windowing” in industry jargon — has become a contentious topic of conversation in Hollywood.

That debate ramped up during the pandemic, when some studios shortened theatrical exclusivity periods in order to move films to release for video on demand or streaming.

Prior to the pandemic, those windows could be as long as 90 days. Now, the average is around 30 days.

Theater owners have argued that shorter windows cut into box office profits and train audiences to wait to watch a movie at home. Distributors have countered that a one-size-fits-all approach doesn’t necessarily work for smaller or mid-budget films, which may find a bigger audience via at-home viewing.

At last year’s CinemaCon trade conference, top theater lobbyist Michael O’Leary called on distributors to establish a minimum 45-day window, arguing there needed to be a “clear, consistent starting point” to set moviegoers’ expectations and affirm commitment to theatrical exclusivity.

The debate has become even more fierce as box office profits still have not recovered from the pandemic. Last year, theatrical revenue in the U.S. and Canada totaled about $8.87 billion, just 1.5% above 2024’s disappointing $8.74-billion tally.