DOW Breaks 12,000
Finance Wednesday, January 26th, 2011The Dow Jones Industrial Average rose more than 20 points, returning to the psychologically important 12,000 level, which it hit earlier in the session. The last time the Dow closed above the benchmark was June 19, 2008.
The S&P 500 rose to above 1,296, while the Nasdaq gained the most for the day in percentage terms, up 0.80 per cent. The CBOE Volatility Index, widely considered the best gauge of fear in the market, fell below 17. Stocks closed largely flat on Tuesday, after shaving losses from earlier in the session.
Dow Breaks 12,000
Most S&P sectors gained, led by energy, materials and telecom.
The Federal Reserve said today that the U.S. economy is improving, but not at a rate strong enough to alter its plan of buying $600 billion in long-term securities to bolster the economy. The Fed also announced it was leaving short-term rates unchanged.
Despite the fanfare, some market pros advised caution in using Dow 12,000 as a reason to jump into stocks.
“Most won’t invest just because the Dow is approaching the 12,000 mark,” said Beth Larson, principal at Evermay Wealth Management. “I would hope that not too many individual investors are getting in at this level.”
And some strategists stressed that the 1,300 level on the S&P is the next important mark that investors should watch.
“I don’t see any resistance all the way into 1,361,” Steve Grasso, director of institutional sales at Stuart Frankel told CNBC.
by JeeYeon Park
Read More: http://www.cnbc.com/id/41271921
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