Dow Jones industrials reach 11,000 milestone

The Dow Jones industrial average today closed above 11,000 for the first time since before the September 11, 2001, terrorist attacks, lifted by a five-day rally that has sent stocks soaring so far in 2006.

According to preliminary calculations, the average of 30 blue-chip stocks ended the day up 52.59, or 0.48%, at 11,011.90, its first finish above 11,000 since June 7, 2001, when it closed at 11,090.74.

Today’s advance followed a 241-point surge last week as investors grew increasingly optimistic that the Federal Reserve will soon end its string of interest rate hikes.

Investment firms’ upgrades of Dow components General Motors Corp. and JPMorgan Chase & Co. gave the Dow the final push above 11,000 today.

“It sends a signal that the US economy has weathered some pretty harsh storms over the past few years and in recent months,” Art Hogan, chief investment strategist at Jefferies & Co., said of the Dow’s achievement.

Hogan said heightened clarity about the Fed’s rate tightening, stabilising oil prices and new investment money from 401(k) and pension funds have contributed to the market’s gains in the new year.

But the market could be tested by key economic data on retail sales and wholesale prices later this week and the upcoming fourth-quarter earnings season.

Broader stock indicators were also at multi-year highs. The Standard & Poor’s 500 index rose 4.70, or 0.37%, to 1,290.15, and the Nasdaq composite index added 13.07, or 0.57%, to 2,318.69, its best close since February 20, 2001.