Dow closes at record high
BY Bloomberg News
Tuesday, March 05, 2013
3/05/13 at 3:16 PM
The Dow Jones Industrial Average climbed to a record, erasing losses from the financial crisis, as China vowed to maintain its growth target and investors bet central banks will continue stimulus measures.
The Dow rose 126.18 points, or 0.9 percent, to 14,254 in New York, surpassing its previous closing high of 14,164.53 as well as its intraday peak of 14,198.1 from Oct. 11, 2007. The Standard & Poor’s 500 Index added 1 percent to 1,539.80 today. The benchmark gauge is less than 2 percent below its record high.
“People are now starting to realize that it is a bull market,” Laszlo Birinyi, president of Birinyi Associates Inc. in Westport, Connecticut, said in an interview on Bloomberg Radio’s “Surveillance” with Tom Keene and Michael McKee. “It’s not going to come back, you’ve missed the train, and the train still has a long way to go. But you better get on it.”
The bull market in U.S. equities enters its fifth year this month. The S&P 500 has surged 128 percent from a 12-year low in 2009 as companies reported better-than-estimated earnings and the Federal Reserve embarked on three rounds of bond purchases to stimulate the economy.
U.S. stock indexes advanced this week amid optimism the Fed will maintain stimulus measures to support the economic recovery. Fed Vice Chairman Janet Yellen said yesterday the U.S. central bank should press on with $85 billion in monthly bond buying while tracking possible costs and risks from the unprecedented program.
Global equities also rose today as China pledged to support economic expansion. The nation will keep its growth target at 7.5 percent for this year and plans a 10 percent jump in fiscal spending, the government said during the start of the National People’s Congress today.
The Dow Jones Industrial Average closes at a record high Tuesday.