NEW YORK — Investors celebrated news of another jump in home sales Thursday by propelling the Dow Jones industrial index to its first close above 9,000 since January.
The stock market’s best- known indicator shot up almost 190 points to 9,069.29, its highest level since November, and all the big indexes gained more than 2 percent.
News that home resales rose in June for the third straight month and by a higher-than-expected amount led investors to extend a buying spree that has lifted the Dow 923 points, or 11 percent, in nine days. On paper, U.S. stocks have gained $1.2 trillion in value.
The week’s economic news and upbeat earnings reports and forecasts from companies including chipmaker Intel Corp. and heavy-equipment maker Caterpillar Inc. convinced investors that the bets they’ve placed since March on a recovering economy were well-founded.
Still, the economy and, in turn, the market are likely to face more quicksand pits in the months ahead. Many more companies, including retailers, who are a barometer of consumer spending, have yet to announce second-quarter earnings. And many of the corporations that have already released their reports said they made money because they had cut costs so deeply, something that they can’t keep doing indefinitely.
There was already some troubling earnings news after trading ended Thursday. Microsoft Corp. missed analysts’ expectations for revenue, sending its shares lower in extended trading. American Express Co. and also traded lower after releasing their earnings.
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. Even with the gains, the Dow is still far off its peak of 14,165 in October 2007.
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.
About five stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 6 billion shares, compared with 4.7 billion Wednesday.
Some analysts warn that stocks won’t be able to hold their gains if companies can’t increase earnings by boosting revenue rather than slashing costs.
“It’s like going on a diet. You can only starve yourself for so long,” said Lawrence Creatura, portfolio manager at Federated Investors in Rochester, N.Y.
The dollar mostly fell against other major currencies, while gold prices dipped. Oil prices rose $1.76 to settle at $67.16 a barrel on the New York Mercantile Exchange.
