NEW YORK — The Dow edged teasingly close to the 13,000 marker on Friday, a milestone it hasn’t reached since before the financial crisis brought the U.S. economy to its knees.
The Dow Jones industrial average rose 45.79 points, or 0.4 percent, to close at 12,949.87, its highest close for the year. That followed a 123-point surge the day before, when it also set a closing record for 2012.
The rest of the market struggled for direction on what turned out to be a quiet news day as traders prepared for the long Presidents Day weekend. The Standard & Poor’s 500 rose 3.19 points, or 0.2 percent, to 1,361.23, also setting a record close for 2012. The Nasdaq composite, after surging Thursday, fell 8.07 points, or 0.3 percent, to 2,951.78.
Greek debt talks idled, and a key economic indicator, U.S. consumer prices, came in at about what analysts were expecting.
The Dow hasn’t closed above 13,000 since May 19, 2008, a time when the Bush administration was still in charge, Lehman Brothers and Merrill Lynch still existed, and unemployment was just 5.4 percent, compared with the current 8.3 percent.
Though 13,000 in some ways would be just a number on a board, with no direct bearing on the fundamentals of the economy, its psychological effect could still be important. People and businesses tend to spend based on how they feel about the economy, and big round numbers can affect feelings just as much as money in the wallet.
“It’s not an insignificant psychological barrier,” said Marc Scudillo, managing officer at EisnerAmper in New Jersey. “People still need to have that vote of confidence that investing in U.S. companies is still the right direction to go long-term.”
On the other hand, popping up to 13,000 could also have a contradictory effect on the Dow. It would almost certainly trigger requirements in some investment firms to sell off some of their stocks, which could briefly push the index back down.
