Dow tops 8,000 for the first time in two months
NEW YORK -- Investors are buying stocks again, sending the Dow Jones industrials above the 8,000 mark for the first time in nearly two months.
All the major indexes soared more than 3% Thursday as optimism grew following more signs that the U.S. economy may be turning around.
For every three stocks that fell, nine stocks rose on the New York Stock Exchange where volume came to 642 million shares.
Financial stocks led the rally, getting a big boost after the Financial Accounting Standards Board relaxed accounting rules forcing banks to re-value all their assets at current prices. The change should help banks reduce losses.
And the Commerce Department revealed a large increase in February factory orders, following Wednesday's better-than-expected readings on pending home sales, manufacturing activity and auto sales.
There's a growing sense on Wall Street that the economy, at least stateside, might be bottoming.
"The market mindset is: OK, we're not in a tailspin," said Jack Ablin, chief investment officer at Harris Private Bank.
Since a nearly 12-year low on March 9, the Dow is up about 19%.
The market has managed to shrug off data showing that the job market remains extremely weak. On Thursday, the Labor Department reported a surprisingly large rise in last week's jobless claims, and on Wednesday, data from a research group showed a bigger-than-expected March decline in private sector employment.
Economists predict that Friday's report will show a loss of 654,000 jobs in March.
"It could be a replay of last month, where we expected terrible, we got terrible, and were relieved it wasn't worse," Ablin said.
The Dow Jones Total Stock Market index, which reflects nearly all stocks traded in the United States, has gained 20.2% — or $1.6 trillion — since March 9.
Analysts are quick to point out, however, that stocks are still well below their October 2007 record highs, and that market rebounds are typically volatile. Investors got a taste of volatility on Monday, when stocks dropped sharply as the Obama administration raised the possibility of a U.S. automaker bankruptcy.
Popular Reads
ABC News Live