Thread: Dow Touches 11,000 (was 7,000 last year)

Dow Touches 11,000

By PETER A. MCKAY.

The Dow Jones Industrial Average briefly broke through 11000 for the first time since late September 2008, though it failed to hold above that milestone at the close.

The Dow posted an late-day high of 11000.98 before trimming its gains to finish at a fresh 18-month high 10997.35, up 0.6%. The Nasdaq Composite and S&P 500 each rose 0.7%.

Energy stocks led the way higher following a rose profit forecast from Chevron, which rallied 2.4%. Rival Exxon Mobil rose 2.3%.

Alcoa was the weakest Dow component, off 3.2%, after J.P. Morgan Chase cut its rating on the aluminum maker to "neutral" from "overweight" ahead of Alcoa's profit report Monday, which will mark the unofficial start of the broader first-quarter profit season on Wall Street.

Many traders expect that the flurry of reports will soon provide the impetus for the Dow to finally break through the 11000 mark on a closing basis.

In each case, traders said sellers seized on intraday quotes around 11000 as opportunities to take money off the table—a common pattern around round-number benchmarks. But the market has shown a broader trend higher lately, helped by improved readings of employment, retail sales, and other key yardsticks that point toward a U.S. economic recovery.

"As long as we're positive, with the market headed in the right direction, I think that's the thing to focus on," said Mike Mainwald, head trader at Lek Securities. "A lot of fears that people had about the economy, or about [the debt crisis in] Greece, have really faded away the last few days."

Analysts are expecting S&P 500's components to report a combined 37% gain in first-quarter profits once all the data from the upcoming reporting season are in hand, according to the latest data from Thomson Reuters.

"People are changing their view and thinking we're in a sustainable recovery," that will support profit growth, said strategist Jim Paulsen, of Wells Capital Management.

Among stocks in focus, Constellation Brands fell 2.5%. The wine maker's fiscal fourth-quarter sales dropped, and its forecast for earnings in the new fiscal year missed analysts' views.

Massey Energy climbed 1.3% after the coal-mining company said it will increase production at its other coal mines, although it won't be able to fully replace planned output from the West Virginia mine shut down by a fatal explosion this week, according to a federal filing. The stock is still down 11% for the week.

In other markets, the dollar slid against the euro as concerns over Greece's debt troubles eased. Oil prices slipped for a third straight day to end at $84.92 a barrel, off 2.2% during the recent slide.

Treasury prices were mixed. The two-year note held steady, yielding 1.064%, while the benchmark 10-year note rose 2/32 to yield 3.883%.

http://online.wsj.com/article/SB1000142 ... TopStories

RELATED

DOW up 70.28, NASDAQ up 17.24, S&P up 7.93

http://www.alipac.us/ftopict-194381.html

RELATED

Dow Clears Another Hurdle in Long Run

The Dow Jones Industrial Average briefly crossed above the 11000 level Friday for the first time in 18 months, marking another key milestone in what has been one of the strongest stock-market rebounds in history.

While the threshold has prompted less fanfare than when the Dow recaptured the 10000 level in October, it represents another big accomplishment for a measure that was below 7000 only a year ago.

http://www.alipac.us/ftopict-194443.html