Dow tops 12,000 for first time in 31 months
The Dow Jones Industrial Average rallied 148 points Tuesday to close at 12,040, the Dow’s highest finish since June 19, 2008.
The S&P 500 also had a good day, finishing 21 points up at 1,307, a high also not seen since June 2008.
Doug May, owner of May Investments at 244 N. Seventh St., Suite B, said Tuesday’s activity didn’t surprise him. The fundamentals of the economy are improving, and stocks are selling for reasonable prices, he said. Plus, he said, the year before a presidential race is usually positive for the stock market.
“I didn’t see any reason to go against history,” May said. “I see things going well into the fall.”
May said he believes Tuesday’s rally “could having staying power,” a statement with which Mike Berry at Colorado West Financial Advisors, 372 Ridges Blvd., agrees.
“The stock market is generally a leading indicator, so any time the market is going up, it signals maybe some good economic times are ahead,” Berry said.
Another indication of those good times may have helped spur the market Tuesday, Berry said. The January 2011 Manufacturing ISM Report on Business, released Tuesday, showed the manufacturing industry was at its highest growth rate in January since May 2004, and all commodities related to the industry increased in price last month. At the same time, oil is increasing in price as unrest continues in Egypt.
Increased demand for commodities indicated to Steven Kinkead, owner of Wallstreet Financial Planners, 2152 S. Canyon View Drive, that Tuesday’s rally would come and may signal a good year is ahead, but he cautions the Dow “may have gone up a little too far a little too quick and may pull back a little bit.”