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Dow closes above 15,000 for first time

A specialist wears a “Dow 15,000” hat as he works at his post on the floor of the New York Stock Exchange on Friday, when the Dow Jones Industrial Average eclipsed that mark, but closed lower. Tuesday was the first 15,000-plus close.

Associated Press

A specialist wears a “Dow 15,000” hat as he works at his post on the floor of the New York Stock Exchange on Friday, when the Dow Jones Industrial Average eclipsed that mark, but closed lower. Tuesday was the first 15,000-plus close.

NEW YORK — Just two months after recovering the last of its losses from the financial crisis, the Dow Jones Industrial Average closed above 15,000 for the first time Tuesday.

It was another milestone in the market's epic ascent of 2013. Good economic reports, strong corporate earnings and fresh support from central banks have eased investors' concerns about another economic slowdown. Many had been on the lookout for signs that a spring swoon would derail the rally, as happened in each of the past three years.

Instead, Wall Street has climbed almost 15 percent since Jan. 1.

"The thing that's been driving stocks is rising confidence," said James Paulsen, chief investment strategist at Wells Capital Management. "Economic growth, job creation and the housing market have been better than expected."

News of stronger hiring over the past three months briefly propelled the Dow over 15,000 on Friday, but it ended the week below that mark.

The Dow closed at 15,056.20, up 87.31 points, or 0.6 percent. The Standard & Poor's 500 index added 8.46 points to 1,625.96, a gain of 0.5 percent. Both indexes reached all-time highs earlier this year, then kept climbing, largely driven by optimism that the U.S. economy will continue gaining strength.

The gains piled up with the growing realization among investors that the traditional threats to a rising market — higher interest rates, falling profits, a possible recession — are unlikely to appear any time soon. What's more, with interest rates near record lows, they see few other places to put their money.

In a round of interviews on Monday, investor Warren Buffett said people pay too much attention to markets reaching new highs. They ought to pay attention when markets hit new lows. "That's when stocks are getting cheaper," Buffett said. "That's when stocks are going on sale."

Record-high profits have also encouraged investors who fretted that slumping sales would lead to shrinking earnings. More than 400 of the S&P 500 companies have turned in first-quarter results, and more than seven out of 10 have beaten Wall Street's earnings expectations, according to S&P Capital IQ.

Dow closes above 15,000 for first time 05/07/13 [Last modified: Wednesday, May 8, 2013 12:15am]
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