Dow tops 13,000 for first time ever
Blue-chip barometer crosses barrier, backs off on earnings, durables orders; new home sales rebound, miss estimates.
NEW YORK (CNNMoney.com) -- The Dow industrials surged past 13,000 for the first time ever Wednesday morning - before retreating a bit - thanks to a strong read on durable goods orders and upbeat earnings from Amazon.com.
The Dow Jones industrial average (up 45.75 to 12,999.69, Charts) added 0.6 percent in the early going, moving as high as 13,034 - a new intraday high - before pulling back a bit.
The broader S&P 500 (up 5.74 to 1,486.15, Charts) index added 0.5 percent. Should it end where it stood in the early going, it would be at a new more than six-year high. The Nasdaq (up 7.06 to 2,531.60, Charts) added 0.4 percent. Should it close where it stood, it would be at a six-year high.
The major gauges have been on the rise over the last few weeks, with the Dow continuing to carve out record intraday and closing highs, thanks to upbeat earnings.
Adding to that Wednesday was a surprisingly strong reading on durable goods orders, which rose 3.4 percent in March, following a revised 2.4 percent increase in February. Economists surveyed by Briefing.com thought orders would rise 2.5 percent.
Another report, released at around 10:00 a.m. ET showed that March home sales rebounded by less than expected from February.
In the afternoon, the Fed's "beige book" read on the economy is expected.
In corporate news, Amazon.com (up $8.85 to $53.60, Charts, Fortune 500) reported higher quarterly sales and earnings that topped estimates late Tuesday. The online retailer also said second-quarter and full-year revenue would top current estimates. Shares jumped Wednesday morning.
Wednesday morning, Dow component Boeing (down $0.22 to $93.45, Charts, Fortune 500) reported higher quarterly sales and earnings that topped estimates. However, the aerospace behemoth also kept its financial forecast for 2007 unchanged. Shares inched lower.
Fellow Dow component Alcoa (up $2.02 to $35.97, Charts, Fortune 500) jumped 5.5 percent after the aluminum maker said it was looking to sell its packaging and consumer segment, responsible for about 10 percent of its 2006 revenue. The company also said it was looking to sell several other smaller units.
U.S. light crude oil for June delivery rose 52 cents to $65.10 a barrel on the New York Mercantile Exchange ahead of the weekly oil inventories report.
Treasury prices slipped, raising the yield on the 10-year note to 4.64 percent from 4.62 percent late Monday. Treasury prices and yields move in opposite directions.
In currency trading, the dollar gained against the yen and was moderately higher versus the euro.