The Dow Jones industrial average closed above 13,000 Tuesday for the first time since May 2008, after a better-than-estimated consumer confidence report bolstered optimism in the world’s largest economy.
The DJIA was up 23.61 points to 13,005.12, an increase of 0.18% over Monday. The Standard & Poor’s 500 index gained 0.34%, or 4.59 points, to 1,372.18, and the Nasdaq composite rose 0.69%, or 20.6 points, to 2,986.76, according to preliminary closing data.
The Dow Jones 30-stock index has been flirting with the 13,000 mark for about a week but always closed below the threshold.
“The U.S. economy is in decent shape,” Malcolm Polley, who oversees about $1.1 billion as chief investment officer at Stewart Capital, said in a telephone interview. “Technicals aside, we’re really not that concerned. Stocks are relatively cheap.”
Tuesday’s rally put the S&P 500 on pace for a third month of gains, the longest streak in a year, amid better-than-estimated economic and corporate data. It rose 4.6% this month. The index trades around 14.1 times reported earnings, compared with the average since 1954 of 16.4 times, according to data compiled by Bloomberg.
Stocks rose as the Conference Board’s index increased more than forecast in February, to 70.8. The euro strengthened vs. the dollar before the European Central Bank provides funds Wednesday to support banks. Earlier Tuesday, stocks fell as orders for U.S. durable goods fell in January by the most in three years. Separate data showed that home prices in 20 U.S. cities dropped more than forecast in December.