Monday, January 09, 2006

Dow Sneaks Past 11,000

"The Dow Jones Industrial Average yesterday breached the 11,000 mark for the first time in four-and-a-half years. "

The Dow Jones Industrial Average has risen from the dead, closing above 11,000 for the first time since June 2001. Monday's advance above the psychologically important 11,000 level has the potential to create some buzz and excitement, a nice change as the blue-chip index had fallen out of favors over the past several years. The Dow even fell 0.6% in 2005, its first annual loss since 2002. The Dow's last attempt to breach the key level, in March 2005, quickly fizzled away.

But on Monday, at least, the Dow managed to hold onto its gains and closed at 11,009.26, adding 49.95 points, or 0.5% on the day. It earlier touched an intraday high of 11,020. The S&P 500 rose 0.35% to 1289, and the Nasdaq Composite gained 0.6% to 2318. "It will be important psychologically to show that the Dow can stay above 11,000 this time around," says Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank. But in a market that's hungrier for real catalysts than for symbolism, fourth-quarter earnings will take precedence in the weeks to come, according to Michael Malone, trading analyst at SG Cowen.

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