Dow Closes Above 12,000 for First Time Since June 2008

Stocks shrugged off instability in Egypt to rally to a two-and-a-half year high Tuesday, boosted by encouraging economic data and better-than-expected corporate earnings.

The blue-chip Dow Jones Industrial Average ($INDU) jumped 146 points, or 1.2%, to close at 12,039, a level last seen in June 2008. The broader S&P 500 ($INX) gained 21 points, or 1.7%, to close at 1,308. The tech-heavy Nasdaq Composite ($COMPX) gained 51 points, or 1.9%, to finish at 2,751.

In the latest indication the U.S. economy is gaining steam, factory orders rose at their fastest pace in seven years in January, the Institute for Supply Management said Tuesday. Consumers are spending more on autos, appliances and other goods, while businesses have invested in more industrial machinery and computers. Last month's reading on manufacturing activity was the highest since May 2004.

Encouraging News

Also fueling the rosier outlook on economic growth, United Parcel Service (UPS) posted better-than-expected fourth-quarter earnings. As the the world's biggest parcel and package delivery company, UPS is seen as a bellwether for global economic activity.

In other encouraging earnings news, Dow component Pfizer (PFE) said its fourth-quarter profit more than tripled from a year earlier. The drugmaker also pleased the Street by committing to cut research costs and shift billions in saving to buying back stock -- even as it joined other pharma companies in issuing a cautious outlook. Separately, global seed company Archer Daniels Midland (ADM) also posted better-than-expected fiscal second-quarter earnings and revenue.

The promising manufacturing and earnings news allowed commodities stocks to soar. Basic materials were the best performing of the S&P 500's 10 major sectors, rallying more than 2.8%. Financials and energy stocks were also strong, boosted by Bank of America (BAC) and ExxonMobil (XOM).

The flight to riskier assets led to declines in safer havens such as the dollar and Treasurys. The U.S. Dollar Index, which measures the greenback against a trade-weighted basket of six major currencies, fell nearly 1%, a large move in currency terms. Bonds sold off, pushing their yields higher. The yield on the benchmark 10-year Treasury note jumped to 3.44% from a prior close of 3.38%

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May 29 2011 at 1:36 AM Report abuse rate up rate down Reply


February 02 2011 at 8:23 AM Report abuse rate up rate down Reply

Headline :"Dow hit's 12,000 !" .....FoxNews headline : " Buggy whip manufacturer's believe slump is permanent "

February 02 2011 at 7:42 AM Report abuse rate up rate down Reply

Funny how the administration and it's minions point to Wall Street as "evil" until the market goes up.

February 02 2011 at 5:24 AM Report abuse +1 rate up rate down Reply

Main street America however paints a very different picture doesn't it ....a decidedly more somber one!

February 02 2011 at 5:09 AM Report abuse +1 rate up rate down Reply

that's right burrows,the fed is rigging the market as they can do it all behind a cutain of secredy,but you and the mainsream clueless media think that things are just rosy. CLUELESS AS USUAL.

February 02 2011 at 12:45 AM Report abuse rate up rate down Reply
Samir semaan

I said that the american economy is improving because consumers start spending money and the increasing in housing sales whether old homes or new help manufactures to boost their earnings and one week ago I said the Dow jones will jump to 12000 points and now the goal is 12500 points.

February 01 2011 at 11:53 PM Report abuse -1 rate up rate down Reply

Do I sense the need for a group hug here?

February 01 2011 at 10:54 PM Report abuse +4 rate up rate down Reply

Some of you guys are NUTS.

February 01 2011 at 9:52 PM Report abuse +7 rate up rate down Reply
1 reply to savemycountry911's comment
LEE Resolution

9:51 PM Feb 1, 201

Did they even have an army
Look it up, Sparky ...

February 01 2011 at 9:52 PM Report abuse +3 rate up rate down Reply