Dow Jones Closes above 12,000 First Time Since 2008

The Dow Jones Average closed over 12,000 for the first time since June 2008 on Tuesday. This occurred as US stocks shrugged off the turmoil in Egypt and soared on positive corporate earnings.

The entire major US market indices were higher. These were sustained by indications that the United States economy is shifting steadily away from recession. Indications include strong January car sales, better than anticipated growth in manufacturing and solid profits reports from Pfizer, UPS and Archer Daniels Midland.

The blue-chip Dow skipped 1.25 percent or 148.23 points to 12,040.16. That is the first close from the previous 12,000 mark since June 19, 2008.

The broader S&P 500 index leaped 1.67 percent or 21.47 points to 1,307.59, whereas tech-heavy Nasdaq index increased 1.89 percent or 51.11 points to 2,751.19.

The general weakness of markets in U.S., which occurred on Friday and Monday sent a buying signal to investors, analysts said.

Michael James of Wedbush Morgan Securities said the market has been in an upbeat trend for several months now. He said that every shift down over the last six months has confirmed to be an opportunity for buying, and many people viewed the downward move on Friday as the same thing.

However, briefly before President Hosni Mubarak offered to step down after three decades of rule on Tuesday, punters pushed back into stocks.

The near-unanimous increase of markets in Asia and Europe on Tuesday gives another positive atmosphere. The refusal of the stock market to extend Friday’s abrupt decrease was treated as an encouraging sign to buyers. According to analysts at, gains abroad also provided a positive backdrop for further buying this session.

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