Nightly News   |  October 27, 2011

Will rise in Dow have impact on Americans?

While the Dow ended the day 12,000 for the first time since August 1, CNBC’s David Faber discusses why Americans may not feel the effects for some time or at all.

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This content comes from a Full-Text Transcript of the program.

BRIAN WILLIAMS, anchor: Now we turn to Wall Street where today this is what passed for good news. The deal late last night to save Europe from collapsing into a heap of debt. So the Dow went on a run today, up 339. NASDAQ gained just under 88. S&P up almost 43 points. The Dow Jones industrial average is now up 13 percent from its low earlier this month which all brings us to our friend David Faber from CNBC . And I know you're not here to defend Wall Street , but here's the question. This disconnect, how many people will get hired in this country because the Dow is on a good run and had a good day? How does that wash over into the rest of the economy? When are we going to feel it?

DAVID FABER reporting: Yeah, we won't feel it perhaps for some time, if we feel it at all. Something else we heard today, which actually was also potentially good news, was the report on the growth of the US economy ; 2.5 percent is how much the US economy grew in the third quarter of this year. That was better than many had anticipated given we were worried we were headed into another recession. But that's still not fast enough, Brian , to actually generate real jobs. And so that continues to be the question. An up stock market, two things it does. It creates confidence in the CEO suite perhaps. That gets them maybe feeling better about spending some money to open a new plant and it also creates more some wealth, maybe some more consumer demand a la spending. Demand also could ultimately create jobs as well.

WILLIAMS: All right, David Faber from CNBC , thanks, as always.