Stocks jumped today, with the Dow Jones industrial average surpassing the 11,000 mark as some key blue-chip stocks staged strong rebounds and investors were cheered by comments from Federal Reserve Chairman Ben Bernanke indicating that inflation will be contained.
"For once, the market liked what Bernanke had to say, and it certainly doesn't hurt that Caterpillar and Boeing had good performance," said Matthew McCormick, a portfolio manager at Bahl & Gaynor Investment Counsel. Both components of the Dow Jones industrial average, Caterpillar Inc. rallied 4.8% and Boeing Co. added 3.6%.
The DJIA closed up 197.46, or 1.83%, at 11,014.38; the S&P 500 rose 26.02, or 2.12%, closing at 1,256.06; and the Nasdaq composite was up 58.15, or 2.79%, to close at 2,144.15. All numbers are preliminary.
Mr. McCormick said despite today's surge — and Wednesday's 110-point bounce in the DJIA — stocks not likely to sustain a rally for long. "I don't think this indicates we're out of the woods yet," he said. "It's the pause that refreshes. I fully expect to see more volatility in our future."
