New York – The Dow Jones industrial average scored its first close above 12,000 Thursday as Wall Street, showing its growing confidence despite new evidence of a weakening economy, managed to hold on to a slim advance.
The stock market’s most prominent benchmark ended the day at 12,011.73, the ninth time in just over two weeks that the Dow has achieved a record- high close. The record came one day after the index of 30 blue-chip stocks made its first intraday foray past 12,000.
The Dow’s latest milestone came on the anniversary of Black Monday in 1987, when the Dow plunged 508 points and suffered its second-biggest percentage drop in history. The Dow finished that day at 1,793.90, far below Thursday’s record.
Trading was erratic Thursday, with the overall market struggling to sustain an advance after two reports signaled the Federal Reserve might have a tougher time orchestrating a soft landing of the economy. Disappointing earnings in the technology sector also weighed on stocks.
The Conference Board’s index of U.S. leading economic indicators rose less than forecast in September.
Meanwhile, the Philadelphia Fed’s general economic index contracted for the first time since April 2003.
The numbers rattled investors who had been sending stocks higher since September on optimism that the Fed might cut rates in early 2007.
Many analysts who use the S&P 500 as their benchmark shrugged off the Dow’s move.
“There’s a lot of fanfare about 12,000, but it’s just another number,” said David Darst, chief investment strategist for Morgan Stanley’s global wealth-management group. “The real story is that there is a river of liquidity that is flowing through the market. … The 12,000 number is one more confirmation of that.”
