California
Dow Jones stock index crosses 40,000: Good or bad for California?
The stock market’s venerable yardstick, the Dow Jones Industrial Average, just made history – crossing 40,000 for the first time.
Yes, this milestone set Thursday, May 16, is only a brief emotional victory for shareholders. Yet it can be seen as a historical milepost for the broader business climate, especially in California.
To honor the moment, the trusty spreadsheet reviewed the Dow’s 5,000-point markers and how California fared in those periods using an economic metric (California unemployment), an interest rate (the average 30-year fixed mortgage), and home prices from the California Association of Realtors.
As we begin our data-filled voyage, let’s note the Dow first crossed 5,000 in November 1995 — back when you could buy the median-priced California single-family home for $176,000.
5,000-point mileposts
Dow passes 10,000 in December 1999: It took the stock index just over four years to double from 5,000 compared with a 28% gain for California homes to $225,000 in the same timeframe. This was an era when the economy broke loose from its early 1990s slumber. California unemployment dipped between 1995 and 1999 to 5% from 7.9% while mortgage rates rose to 7.9% from 7.4%.
15,000 in May 2013: The Dow needed more than 13 years to gain 50% to hit this benchmark vs. an 85% surge for homes statewide to $417,000 in the same period. This extended gap came during the financial rollercoaster ride from the bubble period in the early 2000s bursting into a Great Recession and then the economy’s slow recovery. So, California unemployment was 9.2%, up from 5% at the beginning of this crazy period. Yet, cheap money was one salve: 3.5% mortgages vs. 7.9% in 1999.
20,000 in January 2017: The Dow took under four years to gain 33% to gain the next 5,000 while homes statewide gained 18% to $492,000 as the post-crash rebound continued. California unemployment fell to 5.2% from 9.2% as mortgage rates ticked up to 4.2% from 3.5% in 2013.
25,000 in January 2018: The Dow needed just one year to gain 25% for its next benchmark vs. a 7% gain for California homes to $528,000 as the recovery hit full stride. California unemployment dipped to 4.4% from 5.2% while mortgage rates slipped to 4% from 4.2% in 2017.
30,000 in November 2020: The index took just under three years to gain 20% vs. 32% for California homes to $699,000 in the middle of the pandemic’s business wild gyrations. California unemployment surged to 9% from 4.4% – but investors cheered historically cheap money such as mortgages hitting 2.8%, falling from 4% in 2018.
35,000 in July 2021: It took the Dow less than a year to gain 17% vs. 16% appreciation for California homes to $811,000 as the pandemic’s economic surge was in full force. Statewide unemployment fell to 7.4% from 9% and mortgages remained cheap – 2.9% vs. 2.8% in 2020.
40,000 in May 2024: The Dow took almost three years to gain 14% vs. an 11% gain for California homes to a record $904,000 in April. The economy struggles to find its new normal as statewide unemployment fell to 5.3% in April from 7.4%. But mortgages got expensive as the Federal Reserve fought and overheated economy – 7% in April from 2.9% in 2021.
Bottom line
So, the Dow is up eight-fold since crossing 5,000 just over 28 years ago. California homes are only five times more expensive.
That’s not the point, though. This stroll down memory lane reminds us that the markets typically need a solid economy for stocks or homes to appreciate. Cheap money is the icing on the cake.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
California
Supreme Court blocks California law limiting schools from telling parents about trans students
BAKERSFIELD, Calif.(KBAK/KBFX) — The U.S. Supreme Court has temporarily blocked a California law that limited when schools could require staff to disclose a student’s gender identity, clearing the way for schools to tell parents if their children identify as transgender without getting the students’ approval.
Rear view of multiracial students with hands raised in classroom at high school
The decision came after religious parents and educators, represented by the Thomas More Society, challenged California school policies aimed at preventing staff from disclosing a student’s gender identity.
Erwin Chemerinsky, dean and professor of law at the University of California Berkeley School of Law, said the ruling favors parents’ ability to be informed. “The Supreme Court today rules in favor of the claim of parents to be able to know the gender identity and gender pronoun of the children,” Chemerinsky said.
FILE:{ }transgender flag against blue sky background { }(Photo: AdobeStock)
The decision temporarily blocks a state law that bans automatic parental notification requirements if students change their pronouns or gender expression at school. The Thomas More Society called the decision a major victory for parents, saying the court found California’s policy likely violates constitutional rights.
Chemerinsky said the Supreme Court’s action is an emergency ruling. “This law is now put on hold. So what this means is that schools can require that teachers and other staff inform parents of the gender identity or gender pronouns of children,” he said.
Kathie Moehlig, founder and executive director of Trans Family Support Services, said she is concerned about how the ruling could affect students who do not have supportive families.
“I am really concerned about our kids that do come from these non affirming homes, that they know that they’re going to get in trouble, that they’re going to possibly have violence brought against them possibly kicked out of their homes,” Moehlig said.
Moehlig said parents should eventually know, but that the conversation should happen when a student feels safe. “Our students are going to be less inclined to confide in any adults that might be able to help to get them access to mental healthcare, to a support system. They may still tell their peers but they’re certainly not going to tell any other adult,” she said.
Equality California, a LGBTQ+ civil rights organization, shared a statement:
Equality California, the nation’s largest statewide LGBTQ+ civil rights organization, released the following statement from Executive Director Tony Hoang in response to today’s U.S. Supreme Court shadow docket ruling in Mirabelli v. Bonta regarding California’s student privacy protections for transgender youth. Today’s decision by the U.S. Supreme Court to intervene in this case is deeply disturbing. By stepping in on an emergency basis, the Court has effectively upended California’s student privacy protections without hearing full arguments and before the judicial process has run its course. While not surprising, this move reflects a dangerous willingness to short-circuit the established judicial process to dismantle protections for transgender youth. While this case continues to be litigated, the ruling revives Judge Benitez’s prior decision, which broadly targets numerous California laws protecting transgender and gender-nonconforming students — threatening critical safeguards that prevent forced outing and allow educators to respect a student’s affirmed name and pronouns at school. These protections exist for one reason: to keep students safe and ensure schools remain places where young people can learn and thrive without fear. To be clear: today’s decision does not impact California’s SAFETY Act, which prohibits school districts from adopting policies that forcibly out transgender students. The SAFETY Act remains in full effect, and we will continue defending it. Transgender youth deserve dignity, safety, and the freedom to learn without fear. We will never stop fighting for transgender youth and their families. Equality California will continue working with parents, educators, and advocates to ensure schools remain safe, welcoming, and focused on the success and well-being of every student.
The case now returns to the U.S. Court of Appeals for the Ninth Circuit, which will decide whether the California law is constitutional.
California
Rep. Kevin Kiley announces run in California’s redrawn 6th Congressional District
Congressman Kevin Kiley has announced his plan to run in California’s newly redrawn 6th district.
In a statement on Monday, Rep. Kiley revealed he had considered running in the 5th District – which could have set up a possible showdown between two current Republican officeholders.
“It’s true that I was fully prepared to run in the new 5th, having tested the waters and with polls showing a favorable outlook in a “safe” district. But doing what’s easy and what’s right are often not the same,” Kiley stated.
Kiley currently represents California’s 3rd district, which originally comprised counties making up much of the back spine of the state.
As of the Prop. 50 redistricting push, the 3rd district was redrawn for the 2026 midterm election to lean toward the Democratic Party – with those eastern spine of California counties lopped off and more of Sacramento County, including Rancho Cordova, added.
California’s new 6th district is now comprised of Rocklin, Roseville, Citrus Heights, much of North and East Sacramento, and the city of West Sacramento. Democratic Rep. Ami Bera currently represents the district, but will be running for the new 3rd district in 2026.
Other declared candidates for the 6th district include Democrats Lauren Babb Thomlinson, Thien Ho, Richard Pan, Kindra Pring, Tyler Vandenberg, and Republicans Christine Bish, Craig DeLuz, and Raymond Riehle.
Kiley was first elected to the House in 2022 and was reelected in 2024.
California
Preliminary magnitude 3.3 earthquake strikes near San Ramon, USGS says
SAN RAMON, Calif. (KGO) — An earthquake with a preliminary magnitude of 3.4 struck near San Ramon at 11:21 p.m. Sunday, the U.S. Geological Survey said.
USGS said the tremor was about 8.4 km in depth.
According to the Geological Survey, people typically report feeling earthquakes larger than about magnitude 2.5.
The closer to the surface an earthquake occurs, the more ground shaking and potential damage it will cause.
No injuries have been reported.
This is the latest quake in San Ramon, which has seen multiple strings of tremors in the past several months.
Bay City News contributed to this report.
MAP: Significant San Francisco Bay Area fault lines and strong earthquakes
Zoom in on the map below and compare where you live to the significant faults and where strong earthquakes have struck in the Bay Area.
Stay with ABC7 News for the latest details on this developing story.
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