The Daily Item, Sunbury, PA

May 7, 2013

Dow Jones industrial average back above 15,000


The Associated Press

NEW YORK — The U.S. stock market joined a global rally Tuesday, and the Dow Jones industrial average continued to flirt with the 15,000 mark.

Wall Street followed Japanese and European markets higher. Those indexes rose in response to good news about central bank stimulus and the German economy.

In the U.S., the market got a lift after satellite TV company DirecTV and watchmaker Fossil reported higher quarterly profits.

The Dow and broader Standard & Poor’s 500 index are trading at record levels, driven by optimism that the U.S. economy is continuing to recover and as the Federal Reserve maintains its stimulus program.

The Dow punched through 15,000 Friday after the U.S. government reported a sharp pickup in hiring last month. The index is 14.8 percent higher this year.

“We don’t think people are giving enough credit to the strength of the economy,” said Ryan Detrick, a senior technical strategist at Schaeffer’s Investment Research. “We still like the market.”

More than 80 percent of companies in the S&P 500 index have reported first-quarter earnings, and profits are at a record level.

Of companies that have reported, almost 70 percent have beaten the expectations of Wall Street analysts for income, according to S&P Capital IQ data. Those analysts expect earnings to rise 5 percent for the first quarter and to keep on climbing throughout the year.