Dow Tops 11,000 for First Time Since May

By CHRISTINE HAUSER
Published: October 8, 2010

The Dow broke through 11,000 on Friday for the first time since May, the latest mile marker in a rally that started in early September and has pushed the index up about 9 percent since then.

The surge this week has been fueled by expectations that more central banks, including the Federal Reserve, could follow the Bank of Japan in taking steps to stimulate their economies. And the move over the 11,000 level came after a disappointing jobs report which renewed expectations that the Fed could make its move at its next meeting in early November.

The last time the Dow Jones Industrial Average broke through 11,000 was on May 4, when the high during the day reached 11,149.48 points before it fell back and closed at 10,926.77.

The Dow reached 11,000.19 at 11:25 a.m. Friday and bobbed around the 11,000 threshold in subsequent trading; by 2 p.m. it had fallen slightly below again. . If the Dow finishes the day above 11,000, it would be the first such close since May 3, when the session ended at 11,151.83.

Robert S. Tipp, a managing director and chief investment strategist for Prudential Fixed Income. cautioned against reading too much into the Dow breaking into new terrain.

“The market looks undervalued and I would expect to see resistance levels taken out,â€