Stocks Close at Highest Level of 2009

(AP)  Investors celebrated news of another jump in home sales by propelling the Dow Jones industrials to their first close above 9,000 since January.

Better-than-expected profits at some of the nation's biggest companies also lifted the market, giving the Dow a 188-point rally to finish at its highest level since November.

The Dow's gain was the latest jump — and not even the biggest — in a surge that has lifted the index 923 points, or 11 percent, in only nine days as hopes grow about an economic recovery.

The latest climb followed a report that sales of previously occupied homes rose for the third month in a row in June. Unemployment and a weak housing market have been two of investors' biggest worries so any sign of improvement is big news for the economy.

The National Association of Realtors said sales of previously occupied homes rose 3.6 percent in June. Sales came in at 4.89 million, above the 4.84 million analysts had been expecting.

Another batch of corporate profit reports also helped boost the market's mood. 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 manufacturing conglomerate 3M Co. and candy maker Hershey Co. raised their profit forecasts for the year.

After a month of wayward trading, stocks began climbing again at the start of last week as companies like Goldman Sachs Group Inc. and Intel Corp. posted solid earnings.

"I don't think the market is signaling that we are fully healed at all but it is telling us that there is a strong likelihood that a recovery is under way," said Ciaran O'Kelly, head of equities, Americas, at Nomura Securities Intl. Inc. in New York.

According to preliminary calculations, the Dow rose 188.03, or 2.1 percent, to 9,069.29. It was the highest finish for the blue chips since Nov. 5 and the first time the Dow has traded or closed above 9,000 since January 6, the third day of trading this year.

The Standard & Poor's 500 index rose 22.22, or 2.3 percent, to 976.29. It hasn't traded or closed above 1,000 since early November.

The Nasdaq composite index rose 47.22, or 2.5 percent, to 1,973.60, its 12th straight advance. The Nasdaq hasn't had a rally that long since a streak that ended Jan. 8, 1992.

[Hulk-Smash]

Hulk watch CEO of Microsoft talk in New Orleans. Him say economy has reset, old market highs full of empty air, debt was 300% of GDP. That why it crash.

[rhs648]

darthcheney072109 - Your description sounds like our president. Got a problem, just throw money at it. Too bad it is our money and not his own. My two grandchildren will be paying off the debt for the rest of their lives. Of course this doesn't bother people who pay little or no taxes. In fact, some people get a tax refund without paying any taxes. Again, that is our money. Talk about upside down.

[Benton09]

The R-ush N-ewt C-heney gang is starving to have it's power back. They're like an addict without their fix. Fix is the operative word, they like to FIX everything to their ideological way of thinking. If it's not their money worshipping, warmongering, hypocritical way, then it can't be anybody's way. Keep on pushing the Repropaganda, soon, no one will listen and you will go the way of the Wig Party.

[maistir]

I'm happy to have a little money back in my IRA, but remember that the market is looking six months ahead and the DJIA is still 40% off its high with companies and consumers not doing very well as yet.

None of this has much to do directly with political parties, but it does have to do with deficits and debt, so that different outcomes in the health insurance debate in Congress would have different effects on the market.

[rhs648]

Benton09 - Don't worry. The Democrats are handing victory to the Republicans. The Republicans don't need to do a thing. Whereas it often takes eight years, President Obama will be history in less than four years. Keep up the good work.

[DaVicar5]

Obama's Health Care Bill is on the ropes, and the Markets Surge?

Coincidence?

[Mac]

The market will really take off when we elect a GOP congress in 2010. We just need to stay alive until then. Then get rid of empty suit Obama in 2012.