So my prediction was correct; the DOW hit 9K!!!
NEW YORK (AP) -- The Dow Jones industrials are back above 9,000 for the first time since the beginning of January.
A report Thursday of a jump in home sales eased investors' worries about one of the economy's biggest trouble spots. They responded by buying stocks across the market, lifting the major indexes more than 1.5 percent and sending the Dow up 150 points past 9,000.
A real estate group said sales of previously occupied homes rose 3.6 percent from May to June. It was the third straight monthly increase and fed investors' hopes that the overall economy is strengthening.
A weak housing market and rising unemployment are widely seen as two of the biggest obstacles to a recovery in the economy. The National Association of Realtors said sales came in at 4.89 million last month, above the 4.84 million analysts had been expecting.
Several better-than-expected earnings reports also helped boost investor sentiment. Ford Motor Co. surprised the market with a second-quarter profit of $2.3 billion due mainly to a huge gain for debt reduction, while drug maker Wyeth, cigarette maker Philip Morris International Inc. and candy maker Hershey Co. all raised their profit forecasts for the year.
A report from UPS Inc., however, was more worrisome. The world's largest shipping carrier said its second-quarter profit plunged 49 percent as sales tumbled. The company also issued third-quarter guidance below analysts' forecasts.
Investors were able to look past a government report showing a bigger-than-expected rise in new jobless claims. The Labor Department said the number of new claims for unemployment benefits rose by 30,000 last week to 554,000, slightly above analysts' estimates. However, a Labor Department analyst said the report was distorted by the timing of auto plant shutdowns.
Also, total unemployment benefit rolls fell to the lowest level since mid-April.
After a month of wayward trading, stocks restarted the market's spring rally early last week after companies like Goldman Sachs Group Inc. and Intel Corp. got earnings season off to a good start with solid reports.
"Things are getting much better and the market is pricing it in," said Phil Orlando, chief equity market strategist at Federated Investors.
In midmorning trading, the Dow rose 153.26, or 1.7 percent, to 9,034.52. The blue chips last traded and closed above 9,000 on Jan. 6.
The Standard & Poor's 500 index rose 17.03, or 1.8 percent, to 971.10, while the Nasdaq composite index rose 32.77, or 1.7 percent, to 1,959.15.
- On Thursday July 23, 2009, 10:58 am EDT
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