Dow zooms to record high
By Bloomberg | March 5, 2013 4:26 pm
Stocks jumped Tuesday, sending the Dow Jones industrial average to a record, and metals rose as China vowed to maintain its growth target, U.S. service-industry growth improved and investors bet central banks will continue stimulus measures. Treasuries fell and the dollar weakened.
The Dow closed up 125.95 points, or 0.9%, to 14,253.77; the S&P 500 rose 14.59, or 1%, closing at 1539.79; and the Nasdaq composite was up 42.1, or 1.32%, to close at 3224.13. All numbers are preliminary.
The Dow climbed above the 14,164.53 record closing level it reached before the global financial crisis. It also eclipsed its previous intraday high of 14,198.1 from Oct. 11, 2007. The gauge plunged 34% in 2008 for the worst performance in 77 years as the housing bubble burst and the U.S. financial system required a government bailout.
About $10 trillion has been restored to U.S. equities in the past four years as retailers, banks and manufacturers led the recovery from the worst bear market since the 1930s. It took the Dow less than 65 months to rise above its previous high set on Oct. 9, 2007, more than a year faster than the recovery from the Internet bubble.
American Express Co., Caterpillar Inc. and Home Depot Inc. have led the Dow's rally since its 2009 low, climbing more than 275% as the economy recovered from the worst recession in seven decades. Hewlett-Packard, the largest personal computer maker, is the only stock still in the 30-company gauge to fall since March 9, 2009.
Bankruptcies and government bailouts helped make the Dow a different gauge than it was in 2007. Citigroup Inc., American International Group Inc. and General Motors Corp. were removed from the price-weighted average, while Cisco Systems Inc. and Travelers Cos. joined. Kraft Foods Inc., which took over AIG's spot, was replaced by UnitedHealth Group Inc. last year after the food-maker split in two.