Make us your home page
Instagram

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: Tuesday, May 7, 2013 11:15pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. First WannaCry, now cyberattack Petya spreads from Russia to Britain

    Business

    Computer systems from Russia to Britain were victims of an international cyberattack Tuesday in a hack that bore similarities to a recent one that crippled tens of thousands of machines worldwide.

    A computer screen cyberattack warning notice reportedly holding computer files to ransom, as part of a massive international cyberattack, at an office in Kiev, Ukraine, on Tuesday.  A new and highly virulent outbreak of malicious data-scrambling software appears to be causing mass disruption across Europe.
[Oleg Reshetnyak via AP]
  2. Higher Social Security payouts help Florida post a big jump in personal income

    Personal Finance

    Personal income grew 1.3 percent in Florida in the first quarter of this year, a four-way tie among all states for second-fastest growth behind Idaho.

  3. U.S. Rep. Charlie Crist and estranged wife Carole put Beach Drive condo on the market

    Real Estate

    ST. PETERSBURG — U.S. Rep. Charlie Crist and his estranged wife, Carole, have put their Beach Drive condo on the market for $1.5 million.

    U.S. Rep. Charlie Crist and his estranged wife, Carole, have put their Beach Drive condo in Parkshore Plaza on the market for $1.5 million. {Courtesy of Amy Lamb/Native House Photography]
  4. Trigaux: Task now is for Water Street Tampa to build an identity

    Business

    Adios, VinikVille! Hello Water Street Tampa.

    An aerial rendering of the $3 billion redevelopment project that Jeff Vinik and Strategic Property Partners plan on 50-plus acres around Amalie Arena.
[Rendering courtesy of Strategic Property Partners]
  5. Unlicensed contractor accused of faking death triggers policy change at Pinellas licensing board

    Local Government

    The unlicensed contractor accused of faking his death to avoid angry homeowners has triggered an immediate change in policy at the Pinellas County Construction Licensing Board.

    Last year Glenn and Judith Holland said they paid a contractor thousands of dollars to renovate their future retirement home in Seminole. But when they tried to move in on Dec. 14, they said the home was in shambles and uninhabitable. They sent a text message to contractor Marc Anthony Perez at 12:36 p.m. looking for answers. Fourteen minutes later, they got back this text: "This is Marc's daughter, dad passed away on the 7th of December in a car accident. Sorry." Turns out Perez was still alive. Now the Hollands are suing him in Pinellas-Pasco circuit court. [LARA CERRI   |   Times]