See More

Dow soars to highest in 5 years

Feb 28 2013 08:09 AP

Related Articles

US stocks tumble on Italy election fears

US stocks dive after Fed minutes

Dow, S&P 500 hit new post-crash highs

Asian markets slip on Fed stimulus fears

Wall Street ends slightly down

US stocks fall on weak economic data


New York - Strong reports on the US housing market and durable goods orders propelled stocks higher on Wednesday, with the much-watched Dow index reaching its highest level in more than five years.

The Dow Jones Industrial Average rose 175.24 to 14,075.37, reaching its best finish since October 12, 2007.

The broad-based S&P 500 rose 19.05 to 1,515.99, while the tech-rich Nasdaq Composite Index jumped 32.61 to 3,162.26.

The gains came after reports showed US pending home sales rebounded sharply in January to the highest level in almost three years.

Also, durable goods orders in January, excluding volatile aircraft, surged 1.9%, with gains particularly strong in capital goods, suggesting business confidence in the economy in upcoming months.

Hugh Johnson of Hugh Johnson Advisers, said markets were also cheered by comments from Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi that suggested accomodative monetary policy would remain in force on both sides of the Atlantic for the foreseeable future.

The market has also begun to conclude that mandatory US spending cuts due to take effect Friday "does not mean the end of the world," Johnson said. "The recognition is that the economy will continue to expand in 2013 and 2014."

All but one of the blue-chip companies in the Dow Jones index closed the day higher.

Among the biggest gainers were JPMorgan Chase, which rose 3.5% after announcing it would trim 19 000 jobs by the end of 2014.

Also gaining was aerospace giant Boeing (up 2.3%), industrial giant Caterpillar (up 2.6%) and technology giant Microsoft (up 1.6%).

Travel website Priceline.com picked up 2.8% after reporting significantly higher profits than a year ago.

Upscale handbag maker Coach jumped 2.8% on speculation that the company could be an acquisition target.

Target declined 1.5% despite reporting earnings that bested analyst expectations. However, the market reacted to comments that the company faces "a highly promotional retail environment and continued consumer uncertainty."

Bond prices fell. The yield on the 10-year bond rose to 1.90% from 1.88% late on Tuesday, while the 30-year rose to 3.10% from 3.08%. Bond prices and yields move inversely.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

wall street  |  markets



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

The Fast and Furious R40 million

With the Fast and the Furious 7 hitting South African cinema’s this April, all eyes are on the cars and we’re in for a treat!


Luxury living

This is the most expensive burger in the world!
Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote