Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Dow Industrials Close at New Record High

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/05/2013 | 12:45pm CEST

--Stocks rise, pushing Dow industrials to all-time high

--Data show service-sector activity expanding at faster pace

--Upbeat European data boosts markets there

The Dow Jones Industrial Average surged to its highest closing level ever, finally overcoming the losses tied to the financial crisis on the back of a tenacious stock rally that began in March 2009. And the blue chips did it with an exclamation point--a 125.95-point blast that left the old record in the dust.

"It really does represent an achievement that we have climbed out of this crater," said Jack Ablin, chief investment officer at Chicago's BMO Private Bank, which manages about $66 billion.

The Dow advanced 0.9% to 14253.77 Tuesday to top its previous high of 14164.53, set in October 2007. Stocks plunged in the wake of the financial crisis, with the benchmark bottoming at 6547.05 on March 9, 2009. The Standard & Poor's 500-stock index rose 14.59 points, or 1%, to 1539.79 Tuesday. The Nasdaq Composite Index added 42.10 points, or 1.3%, to 3224.13.

At the 2009 lows, "there was just this amazing fear of losing money, just this fear in people's eyes," said Erik Davidson, deputy chief investment officer at Wells Fargo Private Bank, which oversees about $170 billion in assets. But things have changed since, he said. "Between fear and greed, there's a stutter-step emotion-regret. That's what people are feeling now. They're kicking themselves for getting so scared."

Nearly four years into the recovery from the longest recession since the Great Depression, stocks are riding expanding U.S. factory activity, higher spending by U.S. businesses and consumers and a recovering housing market. Strong service-sector data released Tuesday added to the picture of an improving economy.

Meanwhile, the Federal Reserve and other central banks have juiced equities by driving down yields in safe-haven assets. Bulls also note the Dow's valuation, which at a price-to-earnings ratio of 14 is 20% cheaper than in late 2007.

But skeptics point to a slowing earnings outlook and potential tax and spending headwinds as lawmakers sort out the U.S.'s debt troubles.

"It's good fundamental data that has been lacking," said Doug Cote, chief market strategist at ING Investment Management, which oversees $179 billion in assets. "This market has really been hanging on central-bank stimulus from around the world."

Mr. Cote, though, said he was encouraged by Tuesday's report from the Institute for Supply Management, which showed the nonmanufacturing sector expanded at a faster pace in February than a month earlier, bucking economists' forecasts for it to slow.

Traders on the New York Stock Exchange trading floor described the session as fairly typical. Some stepped back from their computer monitors to reminisce about 2007, when they said the mood was more electric as the blue chips hit new highs. They said the sluggish pace of economic recovery-and a sharply lower level of activity on the stock-exchange floor-made celebrations harder to come by these days.

"There's definitely more caution in the air this time," said Mark Otto, a Knight Capital Group director based on exchange floor. Still, he said, "the momentum is to the upside."

European markets were broadly higher, with the Stoxx Europe 600 up 1.8% to its highest close since June 2008. Euro-zone retail sales rose more than expected in January, according to Eurostat. Markit's February composite purchasing managers index for the region was revised higher.

Asian markets bounced from the previous session's sharp declines. China's Shanghai Composite, which tumbled 3.7% on Monday after the introduction of new measures to cool the country's property market, climbed 2.3%. Departing Premier Wen Jiabao helped reassure investors as he kicked off the annual session of the National People's Congress by announcing an economic growth target of 7.5% for 2013, as expected.

Elsewhere, Australia's S&P ASX 200 gained 1.3% after stronger-than-expected retail-sales data and Japan's Nikkei Stock Average added 0.3% to close at a fresh 4 1/2-year high.

Front-month April crude-oil futures added 0.8% to settle at $90.82 a barrel, while March gold futures advanced 0.2% to settle at $1,574.60 an ounce. The dollar eased slightly against both the euro and the yen. The 10-year Treasury note fell in price to yield 1.894%.

Among single stocks, Cisco Systems added 2.3%, leading gains across 27 of the 30 Dow stocks. Nine blue-chip stocks, including Johnson & Johnson, Pfizer and 3M, logged 52-week highs.

J.C. Penney tumbled 11%, the biggest decline among S&P 500 components, after commercial landlord Vornado Realty Trust moved to sell 10 million shares, or more than 40% of its holdings in the department-store chain.

Ascena Retail Group climbed 14% after the operator of Dressbarn, Justice and Maurices stores reported a smaller-than-expected decline in earnings.

Qualcomm gained 2% after the semiconductor maker raised its dividend by 40% and announced a $5 billion stock repurchase program.

Impax Laboratories slid 26% after saying Food and Drug Administration inspectors have found continuing problems at its Hayward, Calif., manufacturing facility that may affect new and pending drug applications.

Santarus surged 11% after the biopharmaceutical company reported fourth-quarter earnings and revenue that topped analyst expectations and affirmed its 2013 outlook.

Williams Partners fell 3.3% after the natural-gas transportation company announced an equity sale.

Professional Diversity Network fell 4.1% after the professional-networking website operator's initial public offering on the Nasdaq Stock Market.

- Alexandra Scaggs contributed to this article.

Write to Matt Jarzemsky at matthew.jarzemsky@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news
Date Title
06:31p UMWELTBUNDESAMT : Federal Government initiates carbon offsetting scheme for all official travel
06:31p IN FOR THE LONG HAUL : Italy’s Energy Interests in Northern Africa
06:31p NORWEGIAN OIL AND GAS ASSOCIATION : Talks break down on offshore agreements
06:31p TUNISIA : do not take it for granted
06:31p SESA : 30 Maggio 2016 - Acquisto Azioni Proprie
06:31p ALTIN AG - EXTRAORDINARY GENERAL MEETING : invitation and agenda - Proposals for capital reduction and dividend - Delisting from the London Stock Exchange
06:31p STARBREEZE AB : Starbreeze acquires the full rights to the PAYDAY-franchise with an installed base of 14 million users
06:28p Patient Handling Equipment Market Worth USD 17.18 Billion by 2021 - High Risk of Injuries to Caregivers - Research and Markets
06:26p SCIENTIFIC METALS : to Acquire Deep Valley Lithium Property
06:26pDJDP WORLD : Agrees to Manage Somaliland Port for 30 Years
Latest news
Advertisement
Hot News 
JERSEY OIL AND GAS : Director's Dealing
VOLVERE : Preliminary results for the year ended 31 December 2015
EXPERT SYSTEM : Swiss Text, 8 June 2016
Ten most active stocks on Tokyo Stock Exchange
DGAP-ADHOC : Capital Stage announces voluntary public takeover offer for all outstanding shares of CHORUS Clean Energy AG
Most Read News
08:52a Oil prices slip as Iraq raises exports
03:21a Exclusive - Chinese, Japanese suitors eye $4 billion sale of CIT plane leasing unit - sources
05/29DJMizuho Chief Warns of Japan Downgrade if Abe Delays Tax Increase
Most recommended articles
12:26pDJDP WORLD : Agrees to Manage Somaliland Port for 30 Years
12:21p Verizon, union agree pay raises, new jobs to end strike
11:42aDJOil Prices Little Changed Ahead of OPEC Meeting -- Update
10:55aDJAIRBUS : Struggles With Its Success -- Update
10:04aDJCHINA PETROLEUM & CHEMICAL : Teapot Refineries Shore Up China's Demand for Crude