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Dow Above 11000

WSJ

Stocks rose, prompting the Dow Jones Industrial Average to close above 11000 for the first time since September 2008, with Caterpillar, Alcoa and Chevron in the lead.

The Dow climbed 8.62 points, or 0.08%, to 11005.97, its highest close since Sept. 26, 2008. Caterpillar was the measure’s best performer, up $1.46, or 2.2%, to 66.73, after Baird upgraded its investment rating on the industrial giant’s stock to “outperform” from “neutral.” The firm cited higher machinery production rates and an expected increase in global mining capital spending.

Alcoa rose 18 cents, or 1.3%, to 14.57, as investors’ hopes rose for the aluminum giant’s first-quarter report. Chevron was also strong, up 93 cents, or 1.2%, to 80.43.

The Nasdaq Composite climbed 3.82, or 0.16%, to 2457.87, its highest close since June 19, 2008. The Standard & Poor’s 500 index added 2.11, or 0.18%, to 1196.48, its highest close since Sept. 26, 2008.

The gains were small as investors were cautious about making big bets ahead of the start of earnings season.

“The market’s very tenuous and cautious,” said Roy Williams, chief executive of Prestige Wealth Management Group. “The market had a lot of momentum in the end of March, but now it’s really trying to find its way and just hanging out to see what the major companies report for their earnings and what’s going to happen from a jobs standpoint.”

He noted that, when fourth-quarter earnings were reported in January, stocks sold off despite earnings and revenue topping analysts’ estimates, as upside “surprises” had already been priced in. “It’s a case of buy the rumor, sell the news,” Williams said, noting that he expects the trend to repeat.

“I think we’ll have a small selloff here and, after earnings season concludes, I think we’ll rally again, in June. So we’re optimistic, but we’re cautious,” he added

A new psychology level for Dow, will this be a fake breakout instead? I got the feeling the market is way to hot. It’d be bad for indices to move higher without any consolidation. So will STI follow brother dow up to 3000 level?

Companies like caterpillar is being watched by investor as they provide clues to what will happen later in the economy.

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