Stocks on the Dow rose this morning, launching the Dow industrials past 13,300 for the first time.The healthy gain was sparked by news of aluminum fabrication firm Alcoa’s offer to purchase its chief rival, Alcan, for a staggering $33 billion. Since Alcoa is one of 30 stocks that comprise the Dow, the news left investors feeling optimistic, giving the market a boost.
According to recent reports, the Dow has now risen in 24 of the last 27 sessions, marking its longest bull run since 1927, when the indicator ended higher in 24 of 27 sessions. The Dow Jones industrial average gained 0.3 percent about 90 minutes into the after opening, briefly touching an intraday record of 13,310.70 before slightly dropping back. If the Dow ends higher on Monday and Tuesday, it would set an entirely new record.
In addition, the S&P 500 came closer to an all-time high, rose about 0.3 percent to 1,509.22. It would need to beat 1527.46 to break the record, originally established in March 2000.
John Prestbo, the editor and executive director for Dow Jones Indexes, said that the news, while important for record-breaking purposes, didn’t necessarily mean it was important for investors.
“We like to set a new record now and again, but it’s technically not a big deal,” Prestbo said in an interview with Market News First. “It’s the direction of the Dow that’s of most significance of investors … it’s the trend that is important, and the trend lately has been up, and a lot of people have been stunned by that.”
However, Prestbo did want to encourage investors to continue watching the Dow’s progress.
“A lot of people complain that the Dow’s record is not significant because it’s such an old index, but I say it’s been holding the market’s direction for 111 years, and has never led investors astray,” Prestbo said.
